Fare & square: Battle for business class

MUMBAI: Business class travellers can now reap the benefit of competition in the domestic skies. In an attempt to challenge market leader Jet Airways, airlines like Kingfisher and Indian have announced schemes and coupons offering discounts on premium class fares.

With the low cost carriers (LCCs) driving competition in the coach class, the full service airlines have decided to pitch for the more lucrative market at the top.

The scramble among the three carriers, Kingfisher, Indian and Jet Airways, has begun after Kingfisher Airlines introduced its premium cabin, Kingfisher First in May. The airline had originally priced its seats at a 10% premium to Jet Airways ‘Club Premier’. Jet controls over 55% of the domestic business class market, analysts said.

Kingfisher has launched two coupon schemes on six routes, which would bring down the price of a Kingfisher First ticket to between Rs 12,500 to Rs 15,000, compared to Rs 22,000 for a long-haul flight. It has also launched a special companion discount offer, which gives a 50% discount to the companion of a full-fare-paying passenger. This targets the corporate jet setter’s spouse.

Kingfisher will continue with the sops to the executive class flyer till the end of September. Says Manoj Chacko, general manager (sales), Kingfisher Airlines, “We’re launching the coupon scheme specifically for a certain set of customers who’re looking at convenience. Since we’re completely on the e-ticketing platform, there are no hassles of proof.”

Public sector carrier Indian has also launched a new campaign to get more people to fly its business class. Under its scheme called Class Apart, Indian has brought executive class fares within striking distance of economy fares for its metro routes.

For instance, fares have been brought down by more than Rs 7,000 for a roundtrip from Mumbai to Delhi at Rs 21,985, which is barely Rs 1,000 higher than the economy class fares. Indian’s scheme runs till March ’07. A spokesperson from Indian told ET that this scheme would seek to increase market share in the face of competition from other domestic airlines.

The idea is to entice a greater number of economy class fliers to consider an upgrade their class of travel, say analysts.

A spokesperson from Jet Airways told ET that the airline is not considering any price cut in the business class. As things stand, Kingfisher First is priced higher than Jet Airways’ executive class on most sectors.

In fact, Jet Airways business coupon schemes work out to be a shade under Rs 9,100 per ticket, nearly 25% cheaper than what a Kingfisher First coupon ticket would cost and 10-15% cheaper than Indian. Additionally, Kingfisher’s frequent flyer program has just been launched and the airline does not have business lounges at airports, both of which are ‘de rigeur’ for the business flyer.