Jet Airways to tap ancillary revenue
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In order to boost revenue, Jet Airways plans to boost its ancillary business. The airlines plan to enhance ancillary revenue to US$10 (INR547) per
passenger from its current earnings of approximately US$3.5 per passenger.
“Since flexibility in increasing air fares is limited, our focus will be on ancillary revenues. At present ancillary revenue forms only three per cent of the total revenue for the airline,” Manish Dureja, Vice President for Marketing at Jet Airways was quoted saying by Hindu Business Line.
The airline has lined up a series of initiatives to tap the ancillary revenue model. It recently tied up with Disney Channel India for its ‘Jet Set Go’ campaign and would wrap a Boeing 737-800 aircraft with images of Disney characters. As a part of the campaign, 37 families from India were selected for an all expense paid trip to Hong Kong Disneyland Resort. The airline in January 2012 played host to an advertisement wrap of Nokia Lumia 800.
Globally, world airlines in 2011 generated US$33.5billion (INR18,056 crore) with earnings of US$20 per passenger.
