The Hindu Business Line : Air Arabia to tap medical tourism traffic

The airline, which will begin services in the country with a daily flight between Sharjah and Mumbai from Saturday, is considering positioning itself as a one-stop shop for patients travelling to India for medical attention.

Mr Rohit Ramachandran, Manager, India, said the airline was planning to tie up with low-cost hotels and medical institutions here to meet the requirements of the patient and his family. Last year around 6,000 UAE nationals travelled to India for medical care, he said.

"We are considering tie-ups with medical institutions and hotels to position ourselves as a one-stop shop for patients and their families travelling to India for medical care," Mr Ramachandran said.

However, this is just one of the market segments identified by the airline in India.

Apart from the middle-class expatriate worker in the Gulf, Air Arabia is also targeting families keen on enjoying an affordable holiday in a city such as Dubai, which has positioned itself as a proximate family holiday destination.

The business community, especially the small trader or businessman, who travels frequently and would need to cut down travel expenses, has also been identified as a potential target market.

The airline is offering a promotional fare of Rs 2,999 for a one-way trip between Mumbai and Sharjah exclusive of taxes. This is 20-30 per cent cheaper than fares on any other airline.

The airline drives economy in operations by cutting down costs on any service that is not essential including meals, which can be bought in-flight. The airline only issues e-tickets, immediately lopping off $8 that goes into issuing a paper ticket. Travel agents can also log into the airline's Internet reservation system to make a booking.

Keeping in mind the peculiar needs of the Indian traveller, the travel agent would be the chief point of distribution. While the airline would not pay the agent a commission, passengers seeking an agent's advice would have to pay him a handling charge of Rs 400 for a one-way ticket and Rs 650 for a return fare. The customer would have to pay a similar amount to the airline for the same service, he said.

The airline has stuck to just one type of aircraft, the Airbus A320, to keep maintenance costs low. Also, it would need to recruit pilots with experience on a single type of equipment.

According to Mr Ramachandran, the company has a lean organisational structure with just 260 employees. With a fleet of five aircraft, the number of employees per aircraft was 50-55 against an average of 200-250 per aircraft on a full-service carrier.

Owned by the Government of Sharjah, the airline currently flies to 15 destinations globally. It plans to expand to two other centres in India by the middle of the year.

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