Air India to focus on tier II & tier III cities

In a big shift in its business strategy, national carrier Air India wants to focus on tier II and tier III cities. The airline plans to have a dedicated fleet shuttle only for smaller centers according a senior company official.
This proposal is part of the new turn around plan that is been reviewed by the government. Currently in the domestic market 80% of the capacity is dedicated for metro routes and only 20% for smaller centers. '50% of the total capacity will fly only on tier II & tier III routes by 2015 if the plan gets approved' said the source.
All small cities between 0-750 miles from the main hubs (Delhi, Mumbai, Kolkatta & Chennai) will be covered under this plan.
21/09/11 Sameer Hashmi/Economic Times

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Categories: Air India Sep 2011, New Sep 2011