| Thus a Delhi-Kullu chartered flight, which costs Rs 60,000 per person at present, would cost Rs 30,000 once Club One Air starts flying. |
| A return ticket on the same route on budget carrier Simplifly Deccan is around Rs 15,000. However, it is more than a price war because the company is planning a whole new business model which will help it offer lower fares. |
| To begin with, it will press into service very light jets (VLJs). "We are planning to get 10 light jets from March 2008 to March 2009," said Ashok Pratap Rai, director, Club One Air. |
| These aircraft cost around $1.5 to three million, whereas a turboprop or a jet aircraft would cost twice as much. "The direct operating costs, which include fuel and maintenance among other factors, is also 20-50 per cent lower," said an aviation expert, adding: "A VLJ is much faster than a turboprop and takes almost the same amount of time for short-haul flights as an Airbus A320." |
| The lower capacity of the four-seater VLJs is again no disadvantage against the eight-seater turboprops or heavier jets like the Cessna Citation II. "These charters are mainly for corporate travel and the average number of passengers internationally is three passengers per flight," said the expert. |
| In terms of on-board service too, it will follow a low-cost model. For instance, passengers will get basic facilities like snacks on board rather than elaborate ordered meals as is the case with other charters. |
| "Currently, we are focusing on companies which have a turnover of Rs 200-300 crore. But with the introduction of low-cost charters, we can look at a lower and much wider segment within a range of Rs 20 crore to Rs 150 crore turnover. This way we can look at a market 50 per cent bigger than the current one. Later, we can even focus on SMEs," said Rai. |
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