Indian aviation firms looking at Ancillary services for revival
The indian aviation industry, which is facing a difficult business environment in recent yeras, is looking at generating revenue from non-ticket or ancillary sources in the country for their revival much like global aviation firms.
Indian aviaition majors have been concerned over government reulations relationg to revenue from non-ticket or ancillary services. However, it is common for airlines to offer such services in order to turnaround their performnace in the country. The strategy has been able to revive several loss making aviation firms in north American reion in recent times.
According to estimates, the non-ticket services accounted for $2.5 billion of the global industry's revenues and in the previous year the figure had crossed $36 billion of global airline income. These services include income from activities like frequent flier programmes, charging for baggage, selling on-board merchandise, preferential seating, charges on carrying fragile equipment, using airline lounges, charging for pillows, blankets, reading materials and others.
These services are expected to account for $50 billion of airline revenues this year worldwide as more aviation firms look to these services to generate revenues.