Corporate travel to prop up budget airlines’ fortune
Notwithstanding fears that the days of low-cost flying are numbered, budget airlines such as SpiceJet and IndiGo have found a new booster — corpo
rate travel. The load factors of these airlines are improving as corporates choose low-cost travel in an attempt to cut costs.
SpiceJet’s corporate business has doubled in the last three months, while IndiGo also saw significant gains in corporate travel. These airlines are allowing the corporate customers to reschedule and cancel their tickets. Corporate travel now comprises nearly 30% of the total business of budget airlines.
SpiceJet has reduced the airfare on advance purchase of tickets and discontinued the congestion surcharge of Rs 150. Rival IndiGo also withdrew the congestion surcharge on Thursday.