‘The next level is advanced biometrics’
We would not need anything but your face to complete the flying processes, Chisari tells Shubhomoy Sikdar
How big an opportunity is the ongoing festival season in India for Lufthansa?
Of course seasonality matters but occupancy has never been an issue for us at least in India. We have never struggled to fill up the planes. What has been an issue and it’s a known fact in India is how to drive the fares and the prices during the festive season because less corporate demand means more people flying for leisure. So there is a different passenger mix on board for us but generally the demand in India has outpaced the capacity that we offer. And this is the reason we are growing here.
Since you mention growth, what’s next on the capacity expansion front?
We are adding five flights by next year, all from Bengaluru to Munich. We are already flying Bengaluru- Frankfurt and are adding Munich as the second hub. That shows there is enough demand all round the year.
What about plans for connecting more Indian cities to more German destinations?
We are constantly looking for newer cities to fly from and to. India is growing at double the rate as compared to the rest of the world as far as the international passenger growth is concerned and we are constantly looking for newer markets. Right now, we are looking to expand the portfolio within the cities we are already operating and there, Bengaluru presented a good opportunity as we had only Frankfurt from there and now we have added Munich. In
Delhi and Mumbai, we already have Zurich, Munich and Frankfurt flights.
Your branding strategy over the years has had a singular focus on telling the passenger how Lufthansa was more ‘Indian’ than one thought it was. Don’t you feel the idea has run its course?
We did sounding boards and panels. We talked to frequent flyers, loyal customers asking them how they felt about us as a German airline trying to cater to Indian needs — the meals or the language that the flight attendants spoke. They said that they valued it a lot and wanted this to stay. So we want to keep it that way for now.
You have started emailing checkin bag tags to flyers. What are the other emerging trends in paperless travelling?
The next level is the application of newer technologies such as biometrics and this means advanced biometrics where we would not need anything but your face to complete the processes.
In terms of technology adoption, where do you see India vis-à-vis your other markets?
I think the adaptability here is outstanding and I would consider it much higher than the standard adoption rate globally. People in general are looking for quick digital solutions.
Much of your focus is on premium economy as a category? What’s the scope for expansion?
It caters for those individuals or companies who find business class too expensive or are bound by their travel policy against using it and yet are reluctant to sit economy. So that upselling comes from the need for leisure, more so from people who are holidaying and consider it as an important time of the year and hence, want to spend it more comfortably. And even some of the corporates when they have to downgrade, they don’t go to economy and choose premium economy instead. So it’s one tool that serves two purposes, different customer segments. Earlier this year we announced the purchase of 40 long-haul flights. Right now we are looking at the specifications of the planes, what do they need to look like. Going ahead we also need to look at the changes in travel trends, take into consideration how millennials are travelling and how we can serve new markets.
Jet’s grounding earlier this year opened up opportunities for others. How much of a windfall has it been for Lufthansa in particular?
They left a void which we were able to capture very well because we serve Europe really well through our established hubs of Munich and Zurich. I think the market was very well covered after Jet left.
How do you assess the competition from Indian players in the coming days?
Right now there is a lot of growth for them is in the low fare area. Once they go international, how their concept is translated into longer haul flights will be crucial. These concepts work really well within India and for shorter duration flights but I am curious to see whether that works on a different turf.