AI to fly low-cost flights from city

New Delhi: The much-awaited low-cost arm of Air India will not only fly from non-metro cities but also from Mumbai and Delhi. The new business model aims to woo passengers of other low-cost carriers.
A source said that all the spadework for making the Maharaja's foray into low-cost operations has been done already. The final launch is expected anytime next month. The airline plans to start flights throughout the day except peak hours.
The low-cost arm is an ambitious project as the airline is suffering massive financial losses. The decision to fly low-cost service in both non-metro and metro airports is taken to bolster the passenger load factor in all the routes.Planning to cash in on the festive season ahead, the airline has worked out competitive ticket pricing in all the routes.
According to Air India's turnaround plan, 70% of flight operations would be in the low-cost carrier mode in the coming years.
"The revenue model is being reworked and there is nothing more reliable than low-cost business model," said the source.
20/08/09 Yogesh Kumar/Daily News & Analysis

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