Indias Air Deccan online reservation a big hit

Monday 29 November 2004 00:05 CET | News

One of the big successes of the low-cost aviation model adopted by Air Deccan has been its online reservation and distribution network.

Air Deccan incurs 7-8 per cent costs on ticket sales, our competition incurs between 25 and 28 per cent. Air Deccan, faced a lot of opposition from the travel agents who decided against selling their tickets. However, as it is now clear, the promise of a cheap ticket drew the customers, who in turn brought in the travel agents. Today, 2,800 travel agents vend Air Deccan tickets, all on the Internet. The airline, which has not issued a single paper ticket, averages sales of Rs 1.5 crore each day, all of which flow into the airlines coffers as it does not directly offer credit to travel agents. However, under a tie-up with ICICI Bank, the bank offers the travel agents credit of about 40 days. While many of its customers pay for their tickets on their cards, cash payments can also be made at TCIL and TCI outlets, which have cash counters of the airline at their premises. Thanks to a robust reservation system, the remotest regions can be brought into the network in the space of 15 days. The key to sustaining the low-cost airline operation includes flying more number of hours, cutting down the turnaround time of airlines once they land to 20-25 minutes, optimising the capacity on each flight and adopting a new work culture that encourages multi-tasking and cutting down costs while not compromising on safety.

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Categories: Payments & Commerce | Payments General
Countries: World
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