Online edition of India's National Newspaper
Thursday, Jun 09, 2005

About Us
Contact Us
Business
News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements | Entertainment |
Advts:
Classifieds | Employment | Obituary |

Business Printer Friendly Page   Send this Article to a Friend

`Alliance Air to take on low-cost competition'

Vinay Kumar

Awaiting the induction of A-319 aircraft

NEW DELHI: As the low-cost domestic carriers make competition in the Indian skies intense, public sector Indian Airlines would gradually model its wholly-owned subsidiary, Alliance Air, on the no-frills platform in a single economy class configuration, Indian Airlines Chairman-cum-Managing Director, Sunil Arora says.

While maintaining that discounted fares were going to stay, the IA chief said that Alliance Air had a lower cost business model which suited it most to make it the low-cost carrier while Indian Airlines would retain its full-service character.

Alliance Air was awaiting the induction of A-319 aircraft and as Alliance route network was integrated with IA, the new aircraft could be put on major trunk routes with different schedule to give the competitors a run for their money. It would be a different brand and banner, he said.

Mr. Arora, a 1980 batch IAS officer, who completes his five-year-long tenure as Indian Airlines CMD this Sunday, is all set to return to his parent cadre Rajasthan next week to take up new challenges.

Looking back at his tenure as IA chief during which he steered the public sector airline through turbulent times, Mr. Arora says his dream remains to see the national carrier fly to U.K. and the U.S. in the near future.

Notwithstanding shortage of aircraft and delay in acquisition of its already approved 43 aircraft from Airbus Industrie, Indian Airlines went in for dry leasing of A-320 aircraft, the backbone of its operations.

Over the past year, IA had leased ten A-320s and the number could go up to 17 soon.

The total number of A-320s in the fleet of IA has gone up to 47 now.

The state-owned carrier was also reeling under the impact of spiralling prices of aviation turbine fuel (ATF) to Rs. 29,000 per kilo litre last year and further rising to Rs. 32,000 per kilo litre this year.

"We had no option but to cut our cost, reducing operating losses and in 2003-04 IA was out of the red with a net profit of Rs. 44 crore,'' he said.

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements | Entertainment |
Advts:
Classifieds | Employment | Obituary | Updates: Breaking News |


News Update


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu