The Hindu Business Line : AI to offer budget airline option on some routes

AIR India passengers flying to some destinations could soon have the option of travelling not only with the Maharaja but also with the airline's soon-to-be launched low-cost airline, AI Express.

The airline's Chairman and Managing Director, Mr V. Thulasidas, told Business Line that on some routes in the Far East and West Asia the airline may look at the option of operating both AI and AI Express.

"Nothing has been finalised, but there could be some destinations such as Singapore and Dubai where there may be enough demand for us to operate both AI and AI Express," the airlines CMD said.

Officials indicated that once AI Express begins operations, the Maharaja might even look at withdrawing from some of the routes it operates at present and look at deploying the spare capacity to not only bolster flights to some other existing destinations, but also look at expanding its operations.

AI has already stated that it would lease Boeing 737 aircraft so that AI Express can start operations. The implementation of the decision would mean that the Airbus A-310 aircraft that AI operates at present on the routes that will eventually be taken over by AI Express would become free for the airline to use elsewhere.

"We are looking at new routes for the spare capacity which is created once the Boeing 737 join the fleet. We will operate wherever required be it in Africa, West Asia or the Far East," Mr Thulasidas said.

Meanwhile, the airline could also look at a tie-up with Indian Airlines for picking up a stake in the proposed modernisation and restructuring of the airports at Delhi and Mumbai. Officials, however, said that no move had been initiated as yet.

On the issue of whether the divestment of the airlines' 100 per cent subsidiary, Centaur group of hotels, was still on the cards officials said that the decision had been left to the Government.