Newstrack

‘What stands out eventually is the level of service one provides to one's customers’

Sharjah-based United Arab Emirates' national budget airline Air Arabia, which is to add Hyderabad - its twelfth destination in the country this month has seen a positive response from the Indian market. A K Nizar, head of sales, Air Arabia talks about the growth of the airline in India and other prospects. By Chetan Kapoor

Chart the growth of Air Arabia in India.

Air Arabia has the distinction of being the fastest-growing international airline in India. The airline started operations to India with the launch of services to Mumbai in March 2005. Since then, the company has achieved massive growth and currently serves 11 destinations in India with 86 flights per week between Sharjah and India. While we don't have a specific figure on the Indian routes contribution, India is considered a major destination for the company.

Our passenger load factor for the first quarter of 2008 stood at 94 per cent from across our destinations network in India. The airline served 2,46,296 passengers on the Sharjah-India routes for the first quarter of 2008, an increase of 43 per cent as compared to 1,72,246 passengers during the same period in 2007.

How is the airline placed in terms of profitability?

During the first quarter of 2008, the company posted a turnover of AED 383 million, up 59 per cent as compared to AED 241 million during the first quarter of 2007. Recently, Air Arabia was selected as the eighth most profitable LCC in the world in terms of net profits for the year 2007.

What is the marketing strategy adopted by the airline in the country?

Air Arabia is a customer-driven airline and we provide real value for money services. This strategy has been responsible for the success the company has achieved in such a short span of time. We believe that our customer-driven initiatives combined with offering the best prices in the market will continue to be the company's focus.

We have also recognised and pushed the power of internet booking in the region. The airline focuses on online bookings to reduce distribution costs and ultimately ticket fares, passing the benefits to the passengers.

Consequently, with the zero per cent commission model becoming a reality in the country and domestic LCCs being permitted to fly overseas, how will the international LCCs to India market themselves to the agent/consumer?

The airline industry is becoming more and more competitive and customers have much more options to choose from today. Each airline follows certain business strategies that act toward the benefit of the airline.

The region is experiencing impressive demand on air travel and this is attracting more players to join the industry, especially in an emerging market such as India. However, what stands out eventually is the level of service one provides to one's customers and the fares offered by the airline.