The Hindu Business Line : US airlines upbeat on India flights

With the first year of successful operations approaching, both American Airlines and Continental Airlines are working on some modifications to further attract the customer.

The decision of the two US airlines, which are among the top 10 airlines globally, to launch non-stop flights between India and the US is paying dividends even before they have completed their first full year of operations.

"The flight has surpassed our expectations, though it is not yet at a point where we can say it is making money. However, the passenger load on the flight has not dropped in off-peak seasons," said Ms Nisha Maharaj, Regional Manager, American Airlines, Indian Sub-Continent. Airline officials added that it was rare for any airline to make money on a new flight during the first year of operations as there are normally huge start-up costs involved in launching any new route.

While refusing to divulge financial details of the route, the Senior Country Director, India, Continental Airlines, Mr Laurent Recoura, echoed similar sentiments. "The flight has exceeded the airline's expectation in terms of quality of revenue and load factors," he said. Probably buoyed by the response in the market, Mr Recoura added that his personal goal was to see the Delhi-Newark flight in the third spot from among the close to 300 weekly departures that the airline operates from 28 cities in 15 countries in the Transatlantic region during 2007.

Both the airlines refused to speculate on the number of passengers they carried during the year. However, during January-December 2004, there were close to 1.5 million passenger bookings and about 1,20,000 premium-class bookings on the US-India route. While American Airlines launched a daily non-stop service between Chicago and Delhi on November 16, Continental Airlines launched its daily non-stop service on November 2 last year.

Shorter flight time

The launch of the non-stop services has cut down the travel time between India and the US considerably. The launch of the American Airline flight to Chicago will see a passenger save between 1 hour 50 minutes and 2 hours 50 minutes, depending on which airline they are travelling to the US by. Officials indicated that while it would take a passenger 17 hours and 45 minutes to travel between India and Chicago on Air India (AI), the same journey would take 18 hours 45 minutes on the German airline Lufthansa while AA would get the passenger to Chicago in just 15 hours 55 minutes.

Since the two American carriers started non-stop operations, another US-based airline, Delta Airlines, has also announced that from November 3, this year it would start a daily non-stop service between Mumbai and New York. In addition, Air-India is also planning to launch non-stop service between India and several US cities from next year after it takes delivery of the new Boeing 777 aircraft.

Interline agreements

However, at the moment, with the first year of operations fast approaching, both American Airlines and Continental Airlines are working on some modifications to further attract the customer. "We are re-designing our business-class seat, which should roll out early next year. Besides, the menu is also being redesigned to suit the north Indian market," said Ms Nisha.

Besides, the airline is working towards signing more interline agreements with both public and private sector airlines in India so as to offer passengers more options, including pricing options. "In the final analysis such agreements could help passengers save 15-20 per cent on what they are paying currently, depending on where in India these tickets are purchased and the travel originates. Besides, such an agreement would allow a passenger to check in baggage through to the final destination at the airport from which the travel begins," airline officials said.

Also on the anvil are plans to link more cities within the country. "We are working on various scenarios. There is no specific agenda right now although we would like to fly to Mumbai," said Mr Laurent. American's plans include looking at the option of launching a flight from the US through a point in Europe to India. Officials indicated that the American Airlines flight to India could happen by next summer.

But if, as a passenger, you are looking for some promotional fares or other freebies as part of the first-year celebrations, you may be disappointed. Both the airlines have no such plans. "By the time we get to the first anniversary, we should hopefully have the India Web site up and running," said Ms Nisha.