Air India intensifies regional ops, to revive defunct low-cost unit

Mumbai: National carrier Air India is moving to revive its defunct low-cost unit Alliance Air with a different brand name starting next March to connect smaller cities in the country, said two airline executives familiar with the plan.
The board of Air India, run by National Aviation Co. of India Ltd (Nacil), has given in-principle approval for the project, code-named India Hopper, said the persons, who declined to be named because they aren’t authorized to speak to the media.
The airline will connect so-called tier II and tier III cities with the 45 small 40- and 80-seater planes that Air India plans to have in its fleet over the next three years. The national airline, which has 11 such aircraft now, is looking at turboprop planes manufactured by ATR, a subsidiary of European firm Airbus SAS.
“Air India would not be in a position to buy planes, but we will be looking at leasing more smaller planes to intensify regional operations,” said one Air India executive.
30/09/10 P.R. Sanjai/Live Mint

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Categories: Air India Regional Oct 2010, NACIL Oct 2010