Cathay invests in Indian network

Cathay invests in Indian network
By admin


Cathay Pacific has underlined the long term potential of the Indian aviation market as it continues to spread its network into the subcontinent.

The Hong Kong-based carrier launched its four times weekly service to Hyderabad last week, just one month after its subsidiary, Dragonair, commenced four weekly flights to Kolkata. The carriers now have a combined total of six Indian destinations.

Tom Wright, general manager South, Middle East and Africa, admitted to Travel Today that sales for the Hyderabad service, while "satisfactory," had started slowly. But he stressed the same had been true of Cathay's Chennai and Dragonair's Bangalore routes upon their launch in 2008, with both now seeing success.

"India is one of those places that if there aren't any flights, then people don't fly whereas the moment flights come on, things start developing," he said.

"If you look at the statistics, the market into and out of Hyderabad isn't as good as some other cities, but now that it's here, it begins to suddenly start generating interest."

Wright predicted initial traffic on the route would be made up primarily of corporate travellers and those visiting friends and relatives. But he was confident the leisure traveller would soon follow.

"There's a distinct leisure market which has already done Dubai, done Singapore, done Bangkok and is now looking to go somewhere else, and along we come," he said.

While Vietnam, Cambodia, Indonesia, Hong Kong, China and Macau are all proving popular with Indian travellers, Wright revealed interest in visiting Australia is also strong, primarily among students and the VFR segment.

In addition, New Zealand is also displaying "fairly dramatic" growth from the Indian market which many have attributed to the destination's recent appearance in a number of Bollywood movies.

But to stir interest in the new flights, Cathay will offer "pretty competitive fares" to customers from each segment with the Hong Kong Tourism Board also actively promoting the services.

Meanwhile, Australia remains a "key market" for Cathay, with Wright reporting healthy inbound figures from Down Under. However, he insisted the overall number of tourists entering India remains comparatively low and highlighted improved infrastructure and air services as necessary to grow arrivals.

Nonetheless, he was certain the airline made the right decision in 2007 when it moved its regional office from Bahrain to Mumbai. The move followed a reappraisal of traffic rights by the Indian government which allowed Cathay to significantly increase its weekly flights, with Chennai and Bangalore added to its network.

"I felt that India would play an increasingly major part in our future, rather like China," he said. "And it's a market that I think is still underserved and has got much more potential."

While no new destinations are on the agenda, Wright was confident further expansion will occur as the country continues to grow economically.

"Even in the six years that I've been here, the development across India has just been extraordinary. I'm convinced there will be a time when we'll be flying to a lot more places."

Email the Travel Weekly team at traveldesk@travelweekly.com.au

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