Air Deccan tickets at HPCL outlets

Next time you need to fly low-cost, go to a Hindustan Petroleum Corporation (HPCL) petrol bunker.

The oil major has tied up with Air Deccan for setting up ticketing kiosks in its fuel stations.

HPCL has offered the space to the airline as part of the company's sales promotion exercise for aviation turbine fuel (ATF). It has also approached other airlines with a similar offer.

Air Deccan, on the other hand, views this as a non-traditional ticket distribution mechanism which will be key for its growth as it is now looking at spreading its operations to smaller locations.

The move will help the low cost carrier expand its network considerably as it currently depends, mainly on internet and call centre based ticket sales.

The carrier, however, has marginal penetration amongst travel agents, as appointing agents with high commission fee would add to its cost of operation.

The airline will initially start such an initiative in the metros and will later extend it to other locations, said company sources adding that will not necessarily mean that the airline will be bound to HPCL for buying ATF.

"We are currently negotiating the number of stations where we will have such kiosks," said an Air Deccan executive.

HPCL is aggressively expanding its ATF business after it spun of the department as a strategic business unit of the company in December 2002.

The current Indian jet fuel market is around 2.5 million tonne per annum which is expected to grow at a rate of 12-15 per cent in the next five to six years.

The expected growth in jet fuel during the current year is 15 per cent but HPCL executives expect the company to beat the industry growth rate and clock a 54 per cent increase in its business by selling about 410,000 tonne ATF this year.