The Hindu Business Line : `There is huge potential in the Indian market'

We have just invested several hundred million Euro in new aircraft that are being operated to India. We believe in this market. — MR THIERRY ANTINORI, VICE-PRESIDENT, MARKETING & SALES, LUFTHANSA

MR THIERRY ANTINORI, VICE-PRESIDENT, MARKETING & SALES, LUFTHANSA

Recently in Kolkata

Lufthansa, like many other global airlines, is bullish on its prospects in the Indian market. Asia is the fastest growing market for the airline, with India, China and Japan being the focal points for its future investment and service extension. The airline's Executive Vice-President, Marketing and Sales, Mr Thierry Antinori, was in Kolkata for the re-launch of the flight from Germany and spoke to the national media on Lufthansa's plans.

Excerpts from the interview:

Will the airline change its business model as more and more airlines launch direct flights between India and the US, especially as Lufthansa carries a lot of traffic on this sector?

The 15-16 hours that it takes on a non-stop flight between India and the US is difficult on families travelling with small children. We feel that the alternative route offered by us is possibly the easier way to fly as you do not need to even change terminals. In fact, it is said that Frankfurt is the biggest US hub outside the US.

What future does the Indian market hold?

We have only been growing in the Indian market for the 47 years that we have been here. We have confidence in India for a number of reasons. We feel there is huge potential here. At present, only one out of 44 Indians is flying at least once a year. In the US it is much higher. We see double-digit growth, year-on-year, for the next five years.

Therefore, the potential here is excellent. If the infrastructure improves, things can only get better. Besides, there are also several German companies operating here.

Lufthansa's plans for India?

We expect to operate at least 10 routes in the next three-to-four years. At the moment we are awaiting the bilateral air services talks between India and Germany that are expected to be held in 2007. We could look at either expanding the flights being operated to either Frankfurt or Munich or look at adding new destinations in India. We have 5-6 destinations here on our radar but no decision has been taken yet.

Currently, Asia accounts for 20 per cent of Lufthansa's revenues. India is the second largest market in the Asia-Pacific region. We operate to six Indian destinations, compared to four destinations in China. In revenue terms India is ahead of China.

Any investments planned for India?

We have just invested several hundred million Euro in new aircraft that are being operated to India. There is no fixed quantum of funds as such but whenever an opportunity arises we shall examine it and, if it makes sense, we are willing to invest. We believe in this market. Besides, on the first flight to Kolkata we have got travel agents and consolidators from Canada and the US to show them the tourism potential that exists for this market.

In addition, through our subsidiaries we are constantly evaluating investment opportunities. If it makes sense we would be willing to invest in a project here. However, we will not invest in airports outside Germany.

On the impact of the delay in delivery of the Airbus A-380.

We have ordered five Airbus A-330 so that the airline can fly the planned capacity that would have been made available by the A-380. We feel the A-330 will offer us enough capacity to meet our needs till the A-380 is ready to join our fleet.