Alliance plans fleet expansion, shifting to budget carrier mode

New Delhi: Alliance Air, the fully-owned subsidiary of Indian, is expanding its fleet of regional aircraft in a bid to revamp its operations as a no-frills carrier. The ageing Boeing 737 fleet of the airline is being phased out and one aircraft has already been dropped from the fleet for conversion into a freighter. The revised business strategy is in line with Indian’s plan to induct two wide-bodied Airbus A330 aircraft and the impending merger with Air India.
Plans are afoot to shift to an internet-based distribution model, curtail in-flight catering and go in for optimum utilisation of crew as well as aircraft. New flights would be introduced to connect regional routes and the airline would do only point-to-point operations like a typical budget carrier, sources in the civil aviation ministry said.In addition, medium-haul routes which do not justify deployment of 100-seater aircraft would be connected through regional jets with 70 seats. Alliance is considering leasing at least half-a-dozen regional jets, the sources added.
After the revamp, the Indian subsidiary would operate ATR turboprops and regional jets, becoming the first airline in India to do so. The company also sought offers for leasing seven more turboprops. All Boeing 737s would go for conversion into freighters by September.
The regional jets would be put into service by Alliance this winter, the sources said.
17/05/07 Economic Times

To Read the News in full at Source, Click the Headline

Categories: Indian May 2007, Low Cost General May 2007