Low cost carriers yet to tap inflight advertising revenue

Globally, low cost airlines have succeeded in boosting their ancillary revenue through in-flight advertisements, but Indian carriers are yet to take off on this front in a big way. Except for Air Deccan which has been advertising products like ICICI Bank credit cards and VIP luggage, and Kingfisher which had earlier tied up with Pepsi, other airlines like Spicejet, GoAir, and Jet Airways are yet to make much headway in this. Surabhi Chawla, an aviation analyst with Angel Broking, says that globally, airlines garner nearly 14-20% of their revenues through in-flight advertisements. However such advertising has been lagging behind in India since premium brands, which are normally advertised on board, are beyond the reach of the average air traveller in India at present, especially after the successful entry of low cost carriers (LCCs).

Says Sandip Shenoy, an industry analyst, “Advertisers of premium products like Christian Dior would not mind giving a small bottle of perfume free to the air-travellers. However, the scenario is different in India.” Sachin Khandelwal, head-cards product group in the ICICI Bank says the product has gained a lot of visibility on Air Deccan flights. The company has done in-flight promotion of the card through headrest in 72 aircraft flying to all the domestic destinations. “There is a good mix of salaried and self-employed travellers flying the airline, and that suits our target customers.” Private carriers are now looking at attracting advertisers in their flights. Says Siddhanth Sharma, CEO, Spicejet, “We are certainly looking forward to boost our auxiliary revenue. We are in talks with firms like Cafe Coffee Day to introduce in-flight advertisements.”

Adds Sanjay Kumar, vice-president, sales and marketing for the airline confirms that at present there are no offers from luxury product advertisers to run promotional campaigns in-flight. “We cannot compromise on the brand image of our airlines by promoting other brands rather then premium products. We shall advertise on baggage tags, and might use headrest as a display space.” Kapil Kaul of CAPA (Centre for Asia Pacific Aviation) adds that in-flight advertisements are poised to grow with the growth in the aviation sector. Warwick Brady, COO, Air Deccan considers in-flight advertising a serious business. The airline earns around Rs 36 crore annually through in-flight advertising.

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