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Air India to launch budget airline
Posted on Wednesday, 02 June 2024 @ 01:37:41 EDT by admin

Anonymous writes "
India's international flag carrier, Air India, plans to launch a new discount airline in April 2005 to boost its share of the key Gulf and Southeast Asian markets, said a spokesman.

The new airline will be a wholly owned subsidiary of the state-run carrier and would fly from New Delhi, Bombay, Madras and the southern state of Kerala using a fleet of 14 leased Boeing 737-800 planes, said the spokesman.

India has a large expatriate population working in the Gulf countries and has decade-old ties with Singapore and Hong Kong, which drives air travel to the two regions.

The Gulf routes are also some of Air India's most profitable, but the airline faces stiff competition in these markets, especially from discount airline Gulf Traveller launched by Bahrain-based Gulf Air in June 2003.

Air-India also has a plan to buy 10 Airbus A340 and 18 Boeing 737-800 planes as part of a five-year $2.2 billion fleet expansion and renewal program, which also awaits government approval.
"

 
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