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We came out with certain innovative ideas to penetrate the market
by segmenting ourselves in a different way. We were fairly successful and in the first week of our launch we had almost 95% load factor and we ended the first month of
operations from Mumbai with 85% load factor with entire 100 per cent INR revenue and this was indeed creditable especially as our launch was not during the peak outbound
travel season.
Even November and December we achieved around 75% and 65% load factor which is commendable especially as it is the winter season in Europe. We are glad to have
done pretty well in the last quarter of 2005 and we will strive hard to retain the momentum in the first quarter of 2006. |
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What is the current configuration of the aircraft out of India and what are your strategies to increase the load factor?
We operate Boeing767 out of Mumbai and Delhi and we have a configuration of 36 business class and 209 economy. We are planning to refurbish our business class which
should happen by mid of next year where we would offer flat beds to our business class traveller. Currently we have a seat pitch of 135. Austrian Airlines is well known for its
service and we not only cater to Indian meals but also Jain meals as we cater to a large
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segment of Gujarati and Marwari travellers and they have widely appreciated the
cuisine options available on flight. The Business Class travel is primarily for our Corporate clients and we have tied up with various Corporate firms and this helps to get our front end market going. My real
challenge is to fill in the leaner months with group movements as in the peak months there is bound to be a large number of FIT travellers and our objective is to get as many
FIT travellers as it helps us get a higher yield at the end of the day. We are also targeting Diamond merchants as we have excellent connectivity to places like Brussels. We
are also going to work in close liason with Tourism Boards. We had sponsored the events of Festa Italiana which was held in November and we are also making efforts in
highlighting tourism to Central and Eastern Europe.
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Our network is very strong within Europe and that is one of our stronger USPs.
The sort of connections especially to Central and
Eastern Europe are excellent with midnight
departures out of Mumbai and by 0900 hours of the
following day you could be in one of the cities of
either Eastern or Central Europe. Currently we are
looking at sectors beyond Vienna especially during
the lean period and also for further connectivity
into USA. |
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We fly into New York and Washington as well as into Canada. So
we are looking at the IT sector movement especially from the
South of India - from places like Bangalore and Hyderabad. We
are also looking at the seasonal traffic of students especially
to U.K. and USA. We also have been tapping the Trade Fair
movements and have tied up with Trade Fair Operators to give
them convenient connections for their clients to cities where
the Trade Fairs are being held in Europe. Besides students and
the trade fair movements we also cater to the Seamen traffic as
the Seamen traffic is very strong out of Mumbai and the movement
is on round the year basis.
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When we look at competition, it is indeed hotting up. However, there is lot of potential and demand out of India and as long as it continues to grow the competition should be
healthy enough. Whenever we sell a fare to Europe we sell a 4 coupon which could either be a Mumbai-Vienna-Frankfurt-Vienna- Mumbai or alternatively one could fly
Mumbai-Vienna then a surface to London and thereafter from London to Vienna and back to Mumbai. So when we offer a 4 coupon ticket, the competition from LCC within
Europe would not really matter as firstly the passengers get a full service carrier and the difference in the cost would be almost negligible as they are getting a 4 coupon
option and rest of the sectors the FIT traveller would normally prefer using Eurail. |
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How has your experience been as prior to Austrian Airlines you were with Cathay Pacific?
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My role has not really changed to a great extend. Earlier I was promoting more of the Eastbound travel and now it is Westbound and across the Atlantic as well. However,
the agents that I deal with remain the same. It has been a wonderful learning experience and I am really enjoying what I am doing. The competition is stiff as airlines are
expanding all the time, increasing frequencies and so on. In our case the bottom line is service and how well we can cater to our travellers. Being part of the Star Alliance
also has its advantages as it gives us excellent connectivity across the globe and I am pretty optimistic that the coming year will see tremendous growth and increase in our
load factor especially by the time we hit the peak tourist season in April. |
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