Air India drops no-frill service; to focus on Express: CMD

Mumbai: National carrier Air India today said it has shelved its plan to launch a separate brand for all- economy, no-frills service-- a la Jet Konnect-- taking into account the changed market-scenario over the last few months.
In the all-economy, no-frills service concept, fares are lower than what full service airlines offer but higher than low cost carriers'.
Last year, Jet Airways had launched its all-economy no-frills service Jet Konnect. Kingfisher Airlines too soon followed. This happened after a steep fall in passenger volume, mainly in business class.
"We would have come out with a separate brand. But since we have the Air India Express (low-cost), we will expand under that brand rather than coming out with a Konnect-kind of concept," Jadhav told reporters at a press conference here.
The airline would rather expand its services offered through low-cost carrier Air India Express on domestic routes, Air India Chairman and Managing Director Arvind Jadhav said.
At present, Air India Express flies on international routes.
Noting that the market conditions have changed drastically over the last few months, Jadhav said that the low-cost carriers' market share has gone up to 60-65 per cent presently from 50 per cent some time back.
Jadhav said that although the concept of a no-frill service offering may work in the initial phase, it might not be successful in the long run.
02/01/10 PTI/Economic Times

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