AI Express to turn value carrier

Mumbai: National Aviation Company, the name of the proposed merged entity of Air India and Indian Airlines, plans to launch a value carrier to take on the challenge from Naresh Goyal’s JetLite, formerly Air Sahara, and Air Deccan, which announced that it would be changing its budget carrier positioning after Vijay Mallya recently acquired a 26 per cent stake.
To this end, international budget carrier Air India Express and Indian Airlines regional subsidiary Alliance Air would be merged into a business unit under National Aviation Company and re-launched as an integrated value carrier on both domestic and international routes, said a senior Air India executive. An announcement to this effect would be made by the minister for civil aviation soon, the executive added.
A value carrier is a business model positioned between a full-service and budget carrier. This would mean that this airline would offer some “frills” including water and snacks.
08/06/07 P R Sanjai/Business Standard

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Categories: Air India Express Jun 2007