Finally, Air India to have domestic low-cost carrier

New Delhi: Domestic budget travellers may soon be spoilt for choice. Air India's low-cost arm, AI Express that focuses on nearby international routes, is planning to launch and expand its domestic operations in a 'calibrated' manner.
Of all Indian carriers, AI is the only one that does not have a domestic LCC. The other two full service airlines, Jet and Kingfisher, now deploy over 65% of their overall domestic capacity on LCC brands like JetKonnect, JetLite and Kingfisher Red. While Jet and Kingfisher overtook AI in terms of domestic market share long ago, now LCCs are also catching up, with IndiGo coming within kissing distance of AI (domestic) last month.
Having a powerful LCC presence may be an integral part of the big AI turnaround strategy being prepared by the management but that rests solely on the airline's overall financial situation. AI chairman Arvind Jadhav-led team will make a presentation on the plan for financial restructuring before the board, independent directors and aviation minister Praful Patel on Sunday in Mumbai.
23/04/10 Saurabh Sinha/Times of India

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Categories: Low Cost General Jul 2010, NACIL Jul 2010