Go Stretch, GoAir tells corporate travellers

Decreasing yields, shrinking passenger traffic, high fuel costs… So, what does the Wadia-promoted LCC GoAir do? Launch premium seating on its flights. Branded GoComfort, it will be targeted at corporate travellers looking for affordable business class comforts.

“There is an opportunity for a business class service at a lower price point as business class travel in network carriers is priced very exorbitantly,” says Edgardo Badiali, CEO of GoAir.

GoAir’s “business class” fares will start with Rs 1,750 added to the budget fare. A traveller will get a choice of a window or aisle seat in the first four rows, complete with extra leg space. GoAir is also mulling a scheme for frequent flyers as nearly 20 per cent of its passengers are repeat flyers.

Aviation experts say LCCs will have to look at increasing their yields. “LCCs have so far been tapping price-sensitive customers but air fares have gone beyond the reach of these customers. So, they are trying to attract corporate travellers,” says Kapil Kaul, India CEO, Centre for Asia-Pacific Aviation.

While Indian aviation companies are expected to post losses adding up to $1.5 billion (Rs 7,350 crore) in 2008, globally that figure is expected to exceed $5.2 billion (Rs 25,480 crore), according to IATA CEO Giovanni Bisignani.

He says that he is “very, very worried” about India. Since the beginning of 2008, nearly 30 airlines have shut shop globally and 20 more are on the “watch list.” He refused to reveal if there are any Indian names on that list.

—T.V. Mahalingam