The Hindu Business Line : AI Express may also fly on domestic routes

AIR India Express, the low-cost arm of Air India, could also start operating in the domestic skies. The AI management is looking at the option of AI Express doing the domestic leg of its operations that are at present carried out by Indian Airlines.

"IA is also looking at operating to more foreign routes and will require the aircraft for its own operations. Therefore, we are examining the option of AI Express operating the domestic leg of AI flights," an AI official said justifying the move.

The new airline, which will take to the skies this April, is to operate on routes from India to the Gulf and the Far East at fares that could be up to 25 per cent lower than existing market rates.

Besides, AI Express will also pay a royalty to the parent for operating abroad.

"AI Express will pay a royalty to AI on an annual basis. The rate of loyalty will not decrease but remain at the same level for some time. It has been worked out already," a senior AI official said, but refused to divulge how much the royalty had been fixed at.

The payment of royalty by AI Express, which is to start operations with leased aircraft and staff, is one of the different revenue streams that are being examined to increase revenues for the parent in a highly competitive and fast changing environment, officials said.

AI Express will not only operate on routes that are to be vacated by AI but will also complement the flights that are operated by the Maharaja on some international routes.

"Both the airlines may operate to a place such as Dubai, where we feel there is a segment of traffic that will want a full service airline. However, there are other routes in the Gulf on which only AI Express will operate," an airline official said.

The airline has recently taken delivery of a leased Boeing 737-800 aircraft so that AI Express can begin operations.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AI Express may also fly on domestic routes

Anomalies in fringe benefit tax will be removed: Govt

`Rules on fringe benefit to leave little room for discretion'

What's so BAD about the cash withdrawal tax?

Big block deal in ONGC shares valued at Rs 745 cr

.in domain latest victim of cybersquatting

European textile majors gung-ho on India