Agents Form A Key Link In Our Distribution Chain: Ali

After making Air Arabia take off successfully, Adel Ali, its CEO, in conversation with Charmaine Fernz talks about plans for additional frequencies and enhancing travel and trade relations

Being the first international LCC to enter the Indian aviation arena, what's next for Air Arabia's?

India is a key market for us. It was an integral part of our initial business plan and it continues to be a strong focus even now. Air Arabia currently flies only to Mumbai at the moment. However, we have submitted an application to the Indian government and waiting for a final decision, which will enable us to fly to more Indian destinations soon. We look forward to growing trade and tourism between India and the UAE.

What marketing strategies would be used specifically for the Indian market?

As with all our markets, we will focus on targeted marketing and will try to reach our customers directly as much as possible. The Indian customer is extremely Internet savvy so we will target them through online campaigns.

What is the airline's target in terms of destination, load factor and frequency for India?

We currently have daily flights to Mumbai and the load factor has been far beyond our expectations, exceeding 90 per cent in April and May this year.

What distribution model would be used to tap the Indian travel trade?

We will follow the same model in India as we do in other regions. Our model focuses on online booking and we have the strongest Internet travel booking profile in the Arab world. We have a strong distribution network on ground as well with over 500 travel agents across the region to provide more face-to-face bookings. So far, over 70 agents in over 100 locations across India have signed up to promote Air Arabia and form a key link in our distribution chain.

What is your take on the commission structure for agents?

This is something that is an integral part of most agents' business and is a structure that is already in place with the agents we deal with in India. And like all our agents across the globe, we do not pay agent commissions. In India, our appointed agents charge a fee of Rs 400 for a one way trip or Rs 650 for a return trip for bookings.

Is there a special plan to target the growing segment of business travellers?

Many corporate outfits all over the world are using low fares airlines as a way of controlling their costs and managing their budgets. More executives are choosing to travel on low-fare airlines instead of opting for high priced executive fares. It is clearly becoming an acceptable practice within the business world with businesses recognizing that a low fare does not equate to low service. We expect this trend to catch on in India as well.