Up in the air

With low-cost carriers accounting for more than 70% of total air traffic in India and full-service carriers (FSCs) such as Kingfisher and Air India seeing value in economy class, it might be time for the latter to reassess the need for frequent-flier programmes. According to Amber Dubey, partner and head-aviation, KPMG: “Frequent-flier programmes amount to 0.2% of the total operating cost of FSCs. Attracting passengers in the price sensitive Indian market is unlikely for these airlines.” Even banks such as Citibank and American Express are looking beyond exclusive tieups with airlines and launching cards which allow to redeem miles across airlines. This might be the only way of keeping air miles programmes relevant and not reducing the cards to entry passes for privileges at airports.