A-I bridges the Gulf with no-frills airline

Maharaja will now have another face, albeit a low profile one. Air India today announced its low cost airline through Air India Express, which will cater to the Gulf and South East Asian sectors.

The new airline, to take wings by April 2005, will offer 25 per cent cheaper fares compared to the normal A-I fares on these routes.

"At the first stage, the new low cost carrier will have a fleet of 14 aircraft and will be supported by an aircraft leasing programme. While six 737-800s will be taken on lease in the first phase, four each will be taken in the second and third phases," Praful Patel, Union minister of civil aviation said here in Mumbai today.

A separate company under A-I would be floated for the new no-frills airline. Except on the Mumbai-Dubai and Delhi-Dubai sector, there will be no duplication of services, Patel said.

"The idea behind the low cost operations is to ensure affordable air fares for the working class traffic to Middle East," Patel said.

"Our national carriers need a product and image change. In the next six months, AI will outsource top professional talent to upgrade its services. The national carrier must have a lion's share both in inbound and outbound air travel market. It is time to restore the past glory of Air India, " Patel added.

He further said that the ministry will work towards the reduction in cost of aviation turbine fuel which is currently very high owing to sales and excise tax implications.