New Delhi: Low-cost govt airline to start soon

By Staff
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Google Oneindia News

New Delhi, July 8: The first government-owned low cost domestic airline is all set to take wings from October 1, with two brand new Boeing 737-800s and existing fleet of Alliance Air.

While ticket pricing will be comparable to those offered by current LCCs, the merged Air India (AI) Express will also offer meals on board.

Based on the Southwest model, food packets will be kept at the entrance of aircraft and passengers will pick them up while going to their seats.

The airline will target routes between big cities and which are not fully covered by full service carriers.

Most airlines are somewhat relieved after Kingfisher CEO Vijay Mallaya acquired stake in Air Deccan which was offering ''suicidal fares.'' The newly merged LCC will not now be forced to sell tickets at below cost price.

Among the order placed for 68 aircraft by AI, 18 single-class, 181-seater Boeing 737-800 are being brought for AI Express. It has so far got seven planes and the next delivery will also be used for the low cost carrier's international arm. The next two planes will be deployed for beginning the domestic LCC. In addition, the merger of AI and Indian is expected to relieve some planes currently both carriers are flying to same destinations.

These too could be for redeployment of capacity on the domestic LCC.

AI officials say the airline is going to lease more planes. The remaining eight Boeing 737-800s to be delivered next year will also go to AI Express.

''Alliance Air will continue to do what they are doing in the name of AI Express,'' said AI's Chairman and Managing Director V Thulasidas.

''But its fare structure will be changed as it is not an LCC.

Later, as Alliance planes are phased out, we'll use planes of the merged airline that will be free with rationalisation of routes that will lead to release of seat capacity,'' he said.

UNI

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