The Hindu Business Line : Lufthansa chalks multi-pronged growth strategy in Indian market

, ENCOURAGED by the Government's recent policy initiatives for the civil aviation sector and the rate of passenger growth fuelled by the new Budget airlines, Lufthansa has chalked out a multi-pronged strategy to capitalise on the growing Indian market.

While the airline is concentrating on increasing the number of flights and better passenger facilities - like launch of on-board Internet services - it is also trying to offer its specialised services such as ground handling, maintenance, and data management to other Indian airlines through various group outfits.

Mr Werner Hesen, General Manager and Director (South Asia), said that India has already edged out China as Lufthansa's priority market.

"Asia accounted for 19 per cent of our global revenue and India accounts for 22 per cent of this share, much ahead of China and second only to Japan," he added.

"India is just at the threshold of a change and the aviation companies have to be ready. The Government is changing its aviation policy and the new Government is not levying royalty any more. In India, the potential currently is much higher than many other parts of the world and there is as much potential for cargo too."

The German carrier currently offers ground handling facilities through its subsidiary company, Globe Ground India, and reservation data management services through a joint venture company with the Indian Bird group of companies.

Thomas Cook, a Lufthansa group outfit, provides various travel-related services, while Lufthansa Tecnik provides maintenance services to Jet Airways.

Mr Hesen said that other new budget airlines are also in talks with the company for maintenance services.

"Also, other airlines are in talks because of Lufthansa's efficiency in reducing the grounding time from a few weeks to only several days. That saves a lot of time."

Lufthansa, which currently runs a catering plant in Bangalore, is planning to start another in Hyderabad.

Among the new services that Lufthansa is planning to offer to its passengers is a new broadband Internet connection in its long international routes. This service has already been launched in select flights and would soon be extended to most of the long-haul routes.

According to Mr Bernhardt Seiter, General Manager, Product Competence Centre, Product Management and Innovations, the broadband connection is being provided by Boeing and will enable passengers to access their office intranet from the flights, thereby allowing high-flying executives to make use of their flying time too.

"Some airlines, like Cathay Pacific, Emirates and a couple of American airlines, provide Internet access through the narrow band but we would be the first to provide it through the Ku-band," Mr Seiter said.

Payment could be made for using the Internet on the flight through credit cards.

Talks are also on to link it with the mobile phone bills, wherein the passenger would get the billing with the monthly phone bill, he said, adding that the company was also exploring ways of linking the payment with redemption of Lufthansa miles.

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