Premium
This is an archive article published on October 15, 2005

Deccan, Spice have rival: IA’s low-cost carrier to take off

Gearing for stiff competition from emerging carriers, Indian Airlines has decided to launch a new low cost service with five Airbus A319s wh...

.

Gearing for stiff competition from emerging carriers, Indian Airlines has decided to launch a new low cost service with five Airbus A319s which were being leased to replace Alliance Air planes.

An in-principle decision has been taken to launch a low cost carrier which will be part of Indian Airlines. This means that the first batch of A319s will not go to Alliance Air though the ageing Boeing 737s will be phased out by March and converted to freighters.

While the airline is yet to decide on a brand name for its low cost option, sources said, ‘India Shuttle’ is one suggestion that is being preferred. This, however, is yet to receive final approval as IA officials work double time to give shape to the new plan.

Story continues below this ad

The model is being worked on the logic that low cost options have better survival chance if operated under the umbrella of a larger airline. Just like Delta Connection, Silk Air and other such models, IA is toying with the idea of providing options in the domestic sector while the principal airline looks at servicing trunk routes and reaching out to more destinations abroad.

The first of the five A319s are expected in November . By March, the entire delivery will be complete. The first lot of A319s will have full economy class configuration which means that the capacity of each will be almost 145, equal to that of an Airbus 320 which IA currently operates.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement