Air India mulling no-frill service through AIE domestically

Mumbai: After domestic private air-carriers, Jet Airways and Kingfisher launched their all- economy services to tap low-cost travellers, state-run Air India
may now enter the no-frill segment in the domestic sector to beat the downturn in the aviation industry.
"We don't see a turnaround in the industry at least before two years...we have to look at different business models. One of the options could be a low-frill model...if a decision is taken, it has to be Air India Express for the domestic sector" a top NACIL official said.
While only four per cent of India's population travels by air, in Malaysia it is 50 per cent. Air India is exploring different business models to beat the downturn and one of the options could be the low-frill model, the official said.
Air India already operates its low-cost Air India Express (AIE) service on the Gulf and South-East Asian routes from several destinations in the country.
So far AIE has not entered the domestic sector, even though it has been planning to do so for quite some time.
07/06/09 PTI/Economic Times

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

Categories: Air India Domestic Jun 2009, NACIL Jun 2009