![]() Financial Daily from THE HINDU group of publications Tuesday, Oct 18, 2005 |
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Marketing
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New Products & Services Logistics - Airlines Air Deccan unveils in-flight shopping scheme Our Bureau
(From right ) Capt. G. R. Gopinath, MD, Air Deccan, along with Mr Amit Chopra and Mr Anil Sharma, Dirctors, AVA Merchandising, in a press conference in the Capital on Monday. Kamal Narang
New Delhi , Oct. 17 LOW-cost carrier Air Deccan on Monday joined hands with Delhi-based AVA Merchandising to launch an in-flight shopping scheme. The scheme, `Brand for Less,' offers shopping at over 10,000 feet during the flight at a reduced cost. "This is a value addition to those flying with Air Deccan. The facility would be available in all 146 daily flights of the company," the Air Deccan Managing Director, Captain G.R. Gopinath, said. The scheme would be implemented with immediate effect and the company targets sales of approximately 25,000 branded products per month. The figure is likely to increase, as the airline increases its fleet strength in the near future. The products would be available at a huge discount over the market retail price, he added. The carrier's operational costs have gone up 20 per cent on account of the increase in crude oil prices. The airline had recently increased some of its fares by 12-15 per cent, attributing the hike to the rising prices of aviation turbine fuel (ATF). "The volatile oil prices have affected everybody and we have suffered too...the prices are really going up right now. But we hope it will reach a peak and will reduce," Captain Gopinath told newspersons here. Stating that the Government's decision to allow airlines to hedge ATF from the international market was a good move, Mr Gopinath said the carrier had already requested the Government to allow private carriers to hedge fuel from abroad. "We have got a clearance from the Civil Aviation Ministry and the issue has been taken up with the Finance Ministry...it should also be approved by the Reserve Bank of India. We hope a positive decision will come soon," he said. He, however, added that the company would wait for a more opportune time to hedge, as the prices were too high. "We normally hedge when the prices are low. And we are hoping for a good time to do that," Mr Gopinath said. Referring to the fleet augmentation, Mr Gopinath said the airline would add 10 aircraft this fiscal. "This fiscal, we have already signed for five more A-320s and the same number of ATRs. Right now, we have seven Airbus." The airline said it would fly four million passengers this fiscal.
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