AI finds global budget carrier an attractive idea

With Malaysia-based Air Asia proposing to start a low-cost global airline, Air India may look at the long-haul budget carrier business following the success of its subsidiary, Air India Express, in the segment.

"We are open to the idea of flying a low-cost airline to Europe and the US. Who knows, it might catch on in future and we would like to gear up to meet such a demand," V Thulasidas, chairman, Air India told PTI.

Air Asia, which offers fares equivalent to Rs 700 between two south-Asian destinations, proposes to offer flights to Europe from Asia for $100, seeking to revolutionise long-haul travel.

Taking a cue from this, Air India is now mulling a budget airline to Europe and the US, Thulasidas said, adding that the national carrier now has low-cost flights to several destinations in the Middle-East from a number of cities in India and between Chennai and Singapore.

Barring Dubai, where Air India operates both budget flights and regular ones with business and first class categories, the airline does not operate regular flights to other destinations in the Middle-East which have low-cost flights.

With Europe and the US requiring at least 8-10 hours of air travel, Air India could consider even a budget, first-and- business-class travel in such long-haul sectors, he said.

"But as of now, there are no concrete plans in this regard," Thulasidas said.