Air India puts off domestic low-fare service launch to Nov

New Delhi: The country’s national carrier, Air India, has been forced to delay the start of its domestic low-fare service from this month to November as it’s in the middle of reassessing fleet plans, according to at least three company executives.
Air India, run by National Aviation Co. of India Ltd, currently operates Air India Express as its international low-fare carrier. Its entry into the domestic low-fare aviation market, part of the carrier’s revival strategy, could further lower ticket prices.
The airline, seeking to emulate a recent move by Jet Airways (India) Ltd, wanted to convert 10 Airbus SAS A320 aircraft to an all-economy class configuration to launch its domestic low-fare service under the Air India Express brand by the middle of this month. The plan has been delayed by about two months as the airline reassesses its fleet, the officials said.
“The conversion has been put on hold,” said an airline executive who asked not to be named, referring to the removal of business-class seats. Most of the 10 aircraft are on lease and will require permission from the lessors for conversion. “That is one hurdle,” he said.
The delay may harm Air India as the peak festival season will be over by the time the carrier begins the service.
04/09/09 Tarun Shukla/Livemint

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Categories: Air India Domestic Sep 2009, NACIL Sep 2009, New Sep 2009