Air India Express, the low cost, wholly-owned subsidiary of Air India, has put its ambitious expansion plans for the Middle East on hold following the government’s decision to disinvest its stake in India’s national carrier, a senior airline official has said.
“We have put our expansion plans in the Middle East sector on hold for now in view of the government decision to pursue disinvestment in Air India,” a senior official of Air India Express, who requested not to be identified because of the sensitivity of the issue, told Arabian Business.
Barring Singapore, Air India Express operations are entirely focused on the Middle East sector, with a network of 12 destinations in the region. The airline has been performing well in the sector, catering to the price-sensitive customers on the Gulf routes.
Air India Express CEO K Shyam Sundar told Arabian Business that the proposed expansion plans of the airline in the Middle East entailed long-term capital commitment towards leasing of aircraft, which requires long-term capital outlay of 8 to 10 years.
“Decisions on such commitments on long-term capital outlay may not be prudent at this juncture because of the current situation,” Shyam Sundar said.
05/08/19 James Mathew/Arabian Business
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“We have put our expansion plans in the Middle East sector on hold for now in view of the government decision to pursue disinvestment in Air India,” a senior official of Air India Express, who requested not to be identified because of the sensitivity of the issue, told Arabian Business.
Barring Singapore, Air India Express operations are entirely focused on the Middle East sector, with a network of 12 destinations in the region. The airline has been performing well in the sector, catering to the price-sensitive customers on the Gulf routes.
Air India Express CEO K Shyam Sundar told Arabian Business that the proposed expansion plans of the airline in the Middle East entailed long-term capital commitment towards leasing of aircraft, which requires long-term capital outlay of 8 to 10 years.
“Decisions on such commitments on long-term capital outlay may not be prudent at this juncture because of the current situation,” Shyam Sundar said.
05/08/19 James Mathew/Arabian Business
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