Financial Daily from THE HINDU group of publications
Friday, Mar 10, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 10, 2006 |
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Airlines Marketing - Strategy Logistics - Airlines AI Express may skip Delhi, Mumbai this summer Tunia Cherian George
According to sources, loads on AI Express' flights from Kerala were above 90 per cent, while that from Mumbai and Delhi had failed to pick up to the same extent.
AIR INDIA Express, the low-fare airline, is planning a new summer schedule.
Mumbai , March 9 Air India Express, which offers low-cost services to the Gulf countries, is believed to be weighing the option of delinking Mumbai and Delhi from its new summer schedule, while adding Chennai to its network. According to travel industry sources, the move by the no-frills subsidiary of the national carrier follows the lower-than-expected load factor on these routes. The summer schedule will begin by March-end. AI Express is likely to offer six flights a week to Singapore and Kuala Lumpur from Chennai, an informed source said. The airline, which began services last year, now flies to four cities in the Gulf, namely, Dubai, Abu Dhabi, Muscat, and Salalah, from Kozhikode, Kochi, Thiruvananthapuram, Mumbai and Delhi.
Load distribution
According to sources, loads on AI Express' flights from Kerala were above 90 per cent, while that from Mumbai and Delhi had failed to pick up to the same extent. The low-cost carrier expects to take delivery of its fourth new Boeing 737-800 aircraft in March and the fifth aircraft in the first week of April. A team of engineers from the airline have left for Seattle to take delivery of the aircraft, which are being leased from ILFC (International Lease Finance Corporation). Air India Express expects to have a fleet of seven aircraft by May and nine by the year-end when it receives the first of the 18, B737-800 aircraft that it has ordered. According to sources, loads on Air Arabia's flights from both Mumbai and Nagpur are above 90 per cent.
Fleet expansion
After the fleet expansion, AI Express would fly to centres like Bahrain, Bangkok and other South Eastern destination. The airline is also thinking of starting no-frills service in the domestic sector jointly with parent Air India.
New revenues
According to sources, AI Express also hopes to increase its revenue from the on-board advertisements. AI Express was the first international airline from India to start a low-cost service last year. The airline was mainly targeting the large number of passengers to Gulf countries particularly from Kerala. Air Arabia, the Sharjah-based low-cost carrier, which operates direct flights between Sharjah and Mumbai and Nagpur, is AI Express' competitor in the low-cost segment. Air Arabia also started the low-cost service last year, immediately after AI Express started the service.
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