The Hindu Business Line : Air India, IA to `rationalise' routes

AIR India and India Airlines are trying to "rationalise" their routes for the better usage of capacity, according to Capt P.P. Singh, Regional Director (India), Air India.

"We have good synergy with Indian Airlines, and even last week, there was a meeting between officials of the two carriers," he told newspersons here on Friday night, dispelling the belief among traders that there is a lack of coordination between the two national carriers.

According to Capt Singh, Air India's plan to acquire 50 aircraft is in an advanced stage and has gone to the Public Investment Board (PIB) for approval. Once through, the aircraft would be available in two years, and would replace the existing leased ones, he said.

The new aircraft would significantly increase Air India's market share, which rose to 21 per cent in 2004-05 from 19 per cent a year before, said Capt Singh. He was here to distribute awards to travel agencies for their contribution to the carrier's passenger revenues.

Asked whether allowing private carriers to operate to foreign countries had affected Air India, Capt Singh, said, "Yes, they have eaten into our market share. However, with the Indian passenger traffic increasing significantly, we will be able to retain our market share with our excellent brand," he said.

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