Summary
- Air India Express is increasing its revenue from ancillary services, which now account for 14-15% of its overall revenue.
- The airline plans to further expand its ancillary revenue and goals to extend it to twenty% within the near future.
- With latest management and financial backing, Air India Express is concentrated doubling its every day departures and market share in the approaching years.
Low-cost airline Air India Express has upped its revenue from ancillary services in recent times. While the airline focuses on offering competitive budget fares to its passengers, it’s now increasingly creating wealth from food and travel services, amongst other things.
Ancillary revenue increase
Air India Express is increasingly offering several services that contribute to its overall revenue. In accordance with a report by businessline, the airline’s ancillary revenue now accounts for around 14-15%, with an additional increase expected within the near future.
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In recent months, Air India Express has offered several latest products, including gourmet meals and other inflight and airport services. The brand new management under the Tata Group is clearly leaving no stone unturned to extend the revenue stream. businessline quotes a source as saying,
“We now have services like cabin carry on luggage which permits you to carry your check in bag within the cabin, or fees for special equipment, we even have services which permits you to pre book your extra baggage. In all, now we have a complete of 20 such services through which we charge a premium besides the seats.”
Aiming for more
The carrier can be creating more room for ancillary revenue, with sources saying that the present 14-15% figure could go as high as 20% within the near future. Indeed, Aloke Singh, CEO of Air India Express, spoke recently on the WINGS India event in Hyderabad and stressed that
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CAPA India also notes that carriers in India have to focus not only on fares but ancillaries as well. It went on to say that a strategic give attention to ancillary services is required to attain structural profitability. In that sense, Air India Express appears to be headed in the correct direction.
Eying more market share
Air India Express received a brand new lease on life when it was privatized together with its parent airline, Air India, two years ago. This got here with a form of economic backing and latest management, unlike anything the carrier had seen before.
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And the carrier already has high hopes for the longer term. It plans to double its every day departures by the top of the financial 12 months 2025 and likewise desires to have twice its current market share in the subsequent five years. With dozens of latest planes slated to affix its fleet in the approaching years, that plan definitely looks achievable.
Air India Express Eyeing Twice The Market Share In 5 Years
The airline expects to receive 40 latest aircraft this 12 months.
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