Merged IA-AI puts off low-cost carrier plan

New Delhi: The merged Air India-Indian Airlines has indefinitely put off its plan of launching a low-cost carrier. While the LCC was slated to be launched last October, the plan is not on the horizon as of now, despite the merged entity is losing market share to other airlines, especially budget ones.
The figures of January-March 2008 showed that Air India (domestic) or the erstwhile Indian Airlines has seen its market share dropping to 14.7%, from 19.2% for this period last year. The latest figures showed that LCCs were able to retain their shares and attract passengers from full service ones due to ever increasing cost of flying.
The merged entity, national Aviation Company of India Ltd (NACIL), is learnt to have asked the commercial department to study reasons for this drop despite the fact that a number of new planes like the A-319 and A-321 had joined the airline recently.
Despite being aware that lack of low cost domestic flights is hitting it badly, the airline is not able to do much because of shortage of pilots to operate new flights.
18/04/08 Saurabh Sinha/Times of India

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Categories: Air India - International Apr 2008, Air India Domestic Apr 2008, NACIL Apr 2008