The Hindu : Kerala News : Government to launch low-cost domestic airline

Online edition of India's National Newspaper
Saturday, Apr 30, 2005

Kerala

Kerala

Government to launch low-cost domestic airline

Staff Reporter

ABU DHABI: Close on the heels of the launch of Air-India Express, the Union Government has decided to launch a low-cost airline in the domestic sector.

Disclosing this to presspersons on board the maiden flight of Air India Express from Thiruvananthapuram to Abu Dhabi on Friday, the Union Minister of State for Civil Aviation, Praful Patel, said: "Alliance Air, the subsidiary of Indian Airlines, will be rechristened India Shuttle for this. It will be the low-cost arm of Indian Airlines in the domestic sector."

He said the airline would be operated using five A-319 aircraft that were to be leased. The leased aircraft would start arriving by December-end and the last aircraft would join the fleet by March 2006.

He said the Boeing 737-200 aircraft used by Alliance Air were over 30 years old and needed replacement. "We are going in for dry lease of the aircraft and later new aircraft will be procured through the ongoing acquisition project," he added.

Mr. Patel said a bilateral agreement had been signed with the Oman authorities on Thursday. With this, Air-India Express would commence flights to Muscat. The first flight to Muscat would be on Tuesday from Kerala. He said four leased aircraft for Air India Express would arrive next year. Later, the number of flights for the airline would go up to 18 once new aircraft joined the fleet.

Mr. Patel said Air India Express would launch flights to Bahrain, Doha and Kuwait from various airports of the country next year. On the confusion over fares, he said they would start from 50 per cent of the market fare of rival airlines.

"There are initial hiccups. They will be sorted out. Air-India Express is to be independent. There is no clash of management. ," he added.

He said the Government would give clearance to the Kannur airport soon. "It will be a green-field airport on lines of the Kochi international airport. Thiruvananthapuram will get a new international airport terminal, designed on international standards. The work on the project will commence this year," he said. The flight reached Abu Dhabi at 11.50 a.m.

Mr. Patel and the Chief Minister, Oommen Chandy, were received at the airport by the Civil Minister of Abu Dhabi, Sheikh Amar Bin Sayed.

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