The
Indian aviation sector has seen unprecedented growth in the recent times. The
latest entrant in the fray is the Bird Group, which plans to start a regional
carrier. With a turnover of Rs 200 crore, the company already has a strong
presence in travel and information technology arena. The company now plans to
expand its base in aviation, hospitality, education and BPO services.
Ankur
Bhatia, executive director, Bird
Group talks about his
plans, the company and the
industry.
You're a technology and distribution solutions provider for most of the travel and tourism industry. Now that you're entering the segment directly, don't you feel you'll be competing against your clients?
I don't think so. In fact, each of our business is a different entity. For example, as of today there are no regional airlines in India. We're creating altogether a new segment. In no way are we eating into the share of existing players. We're not gunning after market shares. In each segment that we enter we'll be a niche player. We are not putting up businesses that would be competing with those of our clients
What are the challenges for the Indian aviation industry and how you plan to address them?
The first and the biggest hurdle is infrastructure. If this boom has to be sustained, we need to develop not only the metro but also the Tier-II and Tier-III cities’ airports. These destinations are yet to be tapped. The metros are now too over-crowded. Also, there is a huge scope for training manpower for the aviation industry, such as pilots and for other activities such as ticketing, reservation and so on. We at Amadeus believe that technology plays a critical role in defining success in the travel and tourism space and we constantly upgrade ourselves matching the needs of our customers.
From a family owning a chain of travel organisations, you have diversified into many other segments. What are the focus areas for the company?
Today, we have more than 500 corporate customers. We’re actively involved in promoting diversified facilities such as specialised services in the areas of loyalty programmes, call centre services, data maintenance, online transaction support services, provision of ground handling services, passenger handling, aviation security, and comprehensive solutions in the field of satellite communications.
From now on our strategic focus will be on the five core verticals. These are travel and aviation, IT & BPO services, hotels and hospitality, education and aviation infrastructure and consulting.
Asia-Pacific is the fastest growing region for air ticketing. How big is the opportunity in India?
E-ticketing, which is paperless travel, is the buzz word in the aviation industry. Amadeus is an IATA-preferred e-ticketing technology partner for achieving paperless travel by 2007 and we’re on track to achieve this important milestone. E-ticketing is a win-win situation for all. The cost of issuing e-tickets can be reduced drastically up to Rs 50 for airlines and help them save a handsome amount. Already, countries such as the US, Canada, Australia, New Zealand, and those in Europe and Latin America are benefiting from e-ticketing. The opportunity in India is immense considering the boom in the aviation sector. And, we’re right there at the top empowering all major players who account for almost 65% of total online travel in India.
You're a technology and distribution solutions provider for most of the travel and tourism industry. Now that you're entering the segment directly, don't you feel you'll be competing against your clients?
I don't think so. In fact, each of our business is a different entity. For example, as of today there are no regional airlines in India. We're creating altogether a new segment. In no way are we eating into the share of existing players. We're not gunning after market shares. In each segment that we enter we'll be a niche player. We are not putting up businesses that would be competing with those of our clients
What are the challenges for the Indian aviation industry and how you plan to address them?
The first and the biggest hurdle is infrastructure. If this boom has to be sustained, we need to develop not only the metro but also the Tier-II and Tier-III cities’ airports. These destinations are yet to be tapped. The metros are now too over-crowded. Also, there is a huge scope for training manpower for the aviation industry, such as pilots and for other activities such as ticketing, reservation and so on. We at Amadeus believe that technology plays a critical role in defining success in the travel and tourism space and we constantly upgrade ourselves matching the needs of our customers.
From a family owning a chain of travel organisations, you have diversified into many other segments. What are the focus areas for the company?
Today, we have more than 500 corporate customers. We’re actively involved in promoting diversified facilities such as specialised services in the areas of loyalty programmes, call centre services, data maintenance, online transaction support services, provision of ground handling services, passenger handling, aviation security, and comprehensive solutions in the field of satellite communications.
From now on our strategic focus will be on the five core verticals. These are travel and aviation, IT & BPO services, hotels and hospitality, education and aviation infrastructure and consulting.
Asia-Pacific is the fastest growing region for air ticketing. How big is the opportunity in India?
E-ticketing, which is paperless travel, is the buzz word in the aviation industry. Amadeus is an IATA-preferred e-ticketing technology partner for achieving paperless travel by 2007 and we’re on track to achieve this important milestone. E-ticketing is a win-win situation for all. The cost of issuing e-tickets can be reduced drastically up to Rs 50 for airlines and help them save a handsome amount. Already, countries such as the US, Canada, Australia, New Zealand, and those in Europe and Latin America are benefiting from e-ticketing. The opportunity in India is immense considering the boom in the aviation sector. And, we’re right there at the top empowering all major players who account for almost 65% of total online travel in India.
Earlier this year, you announced a joint venture with Thailand’s hospitality group, Dusit Hotels and Resorts. How are your projects shaping up?
The Bird Hospitality Services has already committed an investment of Rs 400 crore. Considering that India is witnessing a tremendous boom with inbound travel of 4.43 million in 2006 and a double digit growth forecast year-on-year till 2020, it was logical for us to make a foray in this segment. As we’ve had announced, the first three properties — in Delhi, Goa and Rishikesh — will be operational by the year 2010. We’re also looking forward to manage third-party properties, where will be providing the management support. It is likely that, to scale up our hospitality and hotels business, we may come out with an public issues as well.
