Air India Express, the low-cost subsidiary of Air India, is reported to be planning to expand network into north India and overseas. CEO K Shyam Sundar hopes to serve the new destinations with 19 new leased 737-800s over the next three years. Air India Express is currently out with a tender for dry lease of eight 737s.
“We are evaluating the response for the six aircraft lease tender and will soon issue a re-tender for two more at least. The first four new aircraft will help us in getting back to our original fleet size of 21, while the rest will be for expansion. We have yet to go to the board with the network expansion plans, so I cannot comment on that,” he said.
Asked why the airline opted for the lease model instead of buying new aircraft, Sundar said, “The lease option gives us a lot of flexibility in terms of capacity. We can shed weight when we need to, and add in other times.”