Opportunities Today :- January 2006 Issue

Interview with Bernhard Baeck Country Manager (India), Austrian Airlines

 

Bernhard Baeck has been the Country Manager (India) for Austrian Airlines for 3 years and under his dynamic leadership, Austrian Airlines has grown in Delhi from four flights a week to daily flights and in 2005, Austrian Airlines spread its wings to Mumbai. They have started five flights a week out of Mumbai. Bernhard in his interview highlights how 2006 is a significant year for Austria as well as Austrian Airlines and why Austrian Airlines should be your first choice for travelling into Europe.

2006 is a very significant year for Austria. How is Austria planning to celebrate this year?

2006 is an important year for AUSTRIA as it is the year of Mozart celebration. It is the 250th birth anniversary of the most famous Austrian-Wolfgang Mozart. There are major celebrations chalked out during the year in major cities like Vienna and Salzburg. It is also a significant year for Austrian Airlines out here in India as in September 2005 we have established a new route from Mumbai to Vienna as well as a daily service from Delhi to Vienna. In 2006, it would be our first full year of service from Mumbai. Our next objective after having started the flights from Mumbai into Austria would be to have daily flights from Mumbai by November. We know that with the support of both the travel trade as well as the Austrian Tourism Office we would have a large number of Indian tourists visiting Austria. Besides, there is a phenomenal tourism potential in the market. We are confident that 2006 will also be the year of Austrian Airlines and not just Austria. 

 

You've been the Country Manager for Austrian Airlines for about 3 years now and recently you have shifted base from Delhi to Mumbai. Tell us about your overall experience during these 3 years.

From the time I started my job out here in India, the feedback I have got has simply been overwhelming. I have got a very warm welcome in India about 3 years ago and it has been wonderful to work with our trade partners in Delhi and I am glad to receive a similar response out here in Mumbai as well. I had excellent all round support. Initially I recall that we had four flights a week from Delhi and within one year we started operating daily flights. We've got excellent results and that gave us the confidence to start the second route from Mumbai. My objective to shift to Mumbai was that I should be around when the flights start from here. At the same time, we have a Manager who takes care of the operations in Delhi. What is important is that Mumbai is the financial and business centre of India and we know that there is a lot of potential for flights from western India. It has been a wonderful experience to work here in India as the people are extremely professional in what they do. 

How has been the initial response in the first 3 months since you started flights out of Mumbai?
The response has been very positive. Although we started flights in the off-peak period which is around September, we had a very good response with the inaugural fare we had of Rs 18900 and furthermore, Austrian Airlines as you know has excellent connections not only within Europe but also to North America and this has also resulted in a large number of business travellers opting for our airline.

 

 The business class has been so well accepted that right from our start in September, all along we've had 70% load factor which contributes a lot to the route and also gives the confidence to our agents that we have an excellent product. We've got an office here in Mumbai and we have an excellent and efficient team who caters to the need of the agents as well as our clients who choose Austrian Airlines. 

You've also come up with some innovative ideas especially in matters of the food available on the flight?

What we realized is that a large number of our travellers are from Gujarat and we have options of Jain vegetarian meal not only in the Business but also in the Economy Class. At the time of reservations itself, passengers can request for the Jain Vegetarian Meal for the Mumbai-Vienna as well as Vienna-Mumbai sector and this initiative has really worked well for us and it has been well accepted and appreciated by our passengers. 

What is the number of passengers on your flight who are visitors to Austria and what is the future projection?
Surprisingly, even though we started flights in September which is not the peak season, we've had around 15% of passengers on our flight who visit Vienna, Innsbruck and Salzburg and the rest of them use Vienna as a hub for their onward connection. This is indeed a big number as when we launched our flights out of Delhi around 3 years ago we did not reach such a high percentage in the low season.

 

 We expect the numbers to definitely grow especially during the summer months of April, May and June when the outbound travel season begins and at that time we are optimistic to have a large number of passengers travelling to Austria with the support of our travel partners especially the tour operators. 

What are your future plans as Austrian Airlines is the fourth largest carrier in Europe?

We plan to add a few more routes besides Mumbai and Delhi after obtaining permission from the Ministries as well as the civil aviation departments in India and we see a huge potential. Our next objective is undoubtedly to have daily flights from Mumbai and thereafter we could look at adding a few more routes which could either be Bangalore, Chennai or Hyderabad. Importantly, Vienna is located in the heart of Europe and has the best connections to Central and Eastern Europe and Vienna is also a strategic hub to west Europe as well as the American continent. At Vienna we have excellent facilities with a minimum connecting time of 25 minutes and the distance from one terminal to another is barely 500 metres which in comparison to other airports in Europe is extremely fast and efficient. Our next strategy is also to offer connections to other Eastern European cities for which Austrian Airline has the best connections out of Vienna. 

What way has Austrian Airlines worked to bring tourists into India? 
We have organized joint workshops with the Indian Tourism Department in Austria to enlighten Austrian Airlines staff and enlighten travellers about India as a destination. As an airline our role is not only to cater to travellers out of India but also to ensure that there are visitors to India from Austria, Germany, Italy and other countries of Europe. Our efforts have yielded results and we have passengers who visit India exclusively for holidays as well.

 

The bottom line is that the route should be profitable and when you join hands with the tourism boards, whether it is the Austrian Tourism in India or the Indian Tourism board in Austria, you have the results and we are benefiting from these partnerships with various tourism boards. We have also joined hands with domestic carriers here to offer onward connections and with many more airlines coming in, we plan to expand this network with other domestic carriers as well. What we are also looking at is to offer boarding pass from a town like Bangalore or Ahmedabad right thru to Vienna via one of our two gateway points in India. 

What is the ATB and what are the other events organized to promote tourism to Austria?

ATB is an annual event organized by Austrian Tourism Board which will be held in Vienna in 2006 and in one of the Austrian provinces in the following year. It is an excellent opportunity for the inbound tour operators to interact with travel agents and tour companies from across the globe and showcase what Austria has to offer. 

The Vienna Tourist Board on the other hand organizes a bi-annual event called “Asia meets Vienna” which primarily caters to tour operators from Asia such as Thailand, Malaysia, China, India and other Asian countries. Here the focus is organizing events on a similar scale as the ATB and in addition they organize sporting events where various teams are formed and they compete against each other. They organize a sporting event like golf and there are awards given. Primarily, this is a team building event and it also gives the opportunity to connect with different countries in an informal way. 

How do you see the growth of Austrian Airlines in the near future?

We are very positive and optimistic about our presence in India as firstly the economy out here is strong and the outbound travel market is growing all the time. The traveller today also wants to experience and visit new destinations and Vienna as a hub would be the best connection for the traveller not only for those who visit Austria but also other neighbouring countries as well. Even the inbound travel to India is growing and expected to grow substantially in the coming year and we are sure that as more people intend travelling on the Indo-European route, Austrian Airlines will play an integral part in offering the best connections on this route. 

What are your comments on the infrastructure situation in India and how is it hampering the growth of the inbound tourism?
Infrastructure is a very critical issue and has to be addressed on a war footing if you want to see the business especially the tourism to grow in India- you have to look at the development of roads, how is business done, the availability of hotel rooms and the expansion of the airport. What is going on at the moment out here is very unhealthy. There is a shortage of hotel rooms and as a result the hotel rates are skyrocketing and even businessmen would find it difficult to come and explore markets here.

 

Take for instance, a place like Bangalore, it is impossible to get any hotel rooms. From the short term point of view, India is doing well but in the long run it will result in a very unhealthy situation as both tourists and businessmen will look at markets where it is more affordable to travel and offer better value for money. With shortage of rooms, limited infrastructure this would be one of the most critical issues for India to establish as a destination and become as popular as Malaysia or Thailand.

What are your comments on issues concerning the changes that are almost inevitable in the airline industry especially concerning e-ticketing and zero commission which would eventually seems inevitable in the coming years?

The travel industry has to move from a commission base revenue to a management fee. You will have to charge the passenger a fee to issue the ticket as the airline industry on one hand is facing stiff competition and hence lowering fares. Then there is the emergence of the Low Cost Carriers(LCC) as well as the increase in fuel costs. So the agents along with the airlines have to work together. E-ticketing will not be a threat to the agent in any way as the agent could also issue the ticket for its passengers promptly and could charge them a transaction or management fee. The changes are already happening in USA and most parts of Europe and with the changing scenario, it would not be any different in India.

During your tenure did you have the opportunity to travel within India and also tell us which are your preferred holiday destinations in Austria?

Well I have travelled mostly on work and have travelled to certain places in the North of India such as Punjab as well as some places in Western India too. I would love to travel extensively and see the country as it has a lot to offer. Although I am from Graz, I have spent most of my time in Vienna and whenever I got an opportunity I used to visit my home town to see my parents.


On holiday, I prefer going to Salzburg in winter for skiing and in summer I used to go to Burgenland which is very close to Vienna and is good for hiking and it's a good area for horse riding as well. 
 

Lastly, what is your message to readers

You must visit Austria and fly Austrian Airlines. We will be coming out with attractive offers in 2006 and being a very significant year, it would be an excellent opportunity for travellers to visit Austria with direct non-stop flights on Austrian Airlines.