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Air India's budget airline to offer up to 50pc discount

DUBAI - Air-India Express, the budget airline promoted by flag carrier Air India that begins operations next month, plans to open bookings March 18 with huge discounts in fare.

Air-India Express will offer up to 50 percent discount on market fares when reservations open Friday, Air-India's chairman and managing director V. Thulasidas, said here.

"The fares will be 25 percent less than market fares. Depending on the time of booking and the availability of seats, discounts of 10 percent to 50 percent will be offered," Thulasidas told reporters here Sunday night.

"The purpose of the new airline is to give cheaper fares. Those buying tickets when the flight is empty stand a better chance of availing of more discounts than those booking at the last moment."

He clarified that discounts would be on market fares and not on the International Air Transport Association (IATA) rates. Also, unlike other budget carriers around the world, Air-India Express will offer food and drinks. Passengers will only have to pay for their alcoholic drink.

Thulasidas and other senior airlines and aviation ministry officials are visiting the UAE and Oman to finalise arrangements for the launch of the new budget airline.

According to him, Air-India Express would begin operations between India and Gulf April 29. Air-India Express will operate 37 flights a week to Abu Dhabi

and Sharjah. While 31 services will connect Kerala, three flights each will be operated from New Delhi and Mumbai.

At first, the new low-cost carrier will fly to all countries in the Gulf except Saudi Arabia, with a proposed fleet of 18 aircraft.

"We want to gradually withdraw all Air-India operations to the Gulf and replace them by the Express in a phased and gradual manner."

Indian cities such as Chennai would be included over the next few months as the size of the market grew, he said.

The service will be extended to other South Asian points like Bangkok, Kuala Lumpur, Singapore and Jakarta next year, after more aircraft are added to the fleet.

Air-India Express has already received its first Boeing 737-800. The aircraft, with 181 economy class seats, have been taken on lease from Boullioun Aviation Services Inc.

According to the official, two more leased Boeing 737-800s would be added to the Air-India Express fleet by early next month.

Thulasidas also talked about adding newer destinations in the Gulf like Salalah in Oman and Al Ain in the UAE in the near future. Sharjah and Ras Al Khaimah would also be likely destinations.

As per the schedule worked out for now, Air India Express will offer daily flights from Kochi and Calicut in Kerala to destinations in Abu Dhabi, Dubai and Muscat (Oman).

"There will be daily flights between Kochi and Calicut to Dubai," Thulasidas stated. "There will be three flights a week from Thiruvananthapuram to Abu Dhabi and Muscat."Kochi would have four flights a week to Abu Dhabi and Muscat, while there would be six flights a week from Delhi and Mumbai to Abu Dhabi and Muscat. The Express aircraft would have a single economy class configuration of 180 seats.

On the baggage limit for the new carrier, Thulasidas said commuters would be allowed to travel with 30 kg from the Gulf to Indian cities - 10 kg less than Air-India permits.The Middle East makes for a third of the airline's capacity and traffic, and provides Air-India with 25 percent of the total revenues. According to the civil aviation ministry, 2.43 million passengers travelled in the Gulf sector in fiscal 2003-04 against previous year's 2.23 million.

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