Costly promotion?

5 million Euros for taxi shuttle
Jat’s latest initiative to win back passengers involves offering a free taxi service within Belgrade for all of those passengers that have a return ticket with Jat. While the airline’s management believes the move will lure passengers away from increasing competition, local media are speculating whether the move is financially viable.

The entire project will set Jat back some 5 million Euros in 2010. The airline recently called upon all taxi companies interested to take part through a public tender. Jat is requesting for 250 taxi vehicles to be available to the airline on a daily basis. The current projection is that 1.600 taxi commutes would be carried out to the airport as a result of this measure. This number could rise if the number of passengers increases, as projected by Jat’s management.

The Serbian national carrier did not wish to estimate the cost of the project. They say that the taxi service is being introduced as a new commodity for its passengers and that they expect “only positive effects from this measure which will mean more passengers and a greater profit for Jat”.

Under the tender rules, several taxi companies can bid jointly in order to win the job. However, the 250 vehicles that will be used on a daily basis must be equipped with a GPS system, receipt printer and the cars must be of a higher standard. Do you think Jat’s new service is a waste of money or a good way to appeal to passengers? Send a comment.

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