Air India is planning to expand operations for the upcoming summer schedule (beginning April), taking its number of flights to over 400 from 380 at present in a bid to garner more revenues from profitable routes. In addition to introducing new international flights the airline will also start operations on the low-cost model on routes serviced exclusively by budget airlines in order to increase market share. This is of course a direct attack on Kingfisher’s collapsing market share.
Come April, Air India will introduce for the first time daily flights between Vizag and Dubai via Hyderabad and those between Delhi and Bahrain via Abu Dhabi.
Further, the frequency of the Delhi-Tokyo flight will be increased to five times a week from four at present and the Delhi-Dammam flight will become a daily operation from twice a week at present.
The airline has also started operations on the low-cost model by removing business class seats from the 34 Airbus aircraft in its fleet in an effort to align itself further with the market and to enhance its revenues. With this, Air India will start flight services on routes serviced only by low-cost carriers. "As the market is moving the low cost way the occupancy in economy class has been growing, while that in business class has been on the decline. We are not exiting the business class segment but aligning ourselves to the demands of the market," said an AI official explaining the rationale behind the decision.
Air India’s hopes of servicing more routes in Europe, the US and Australia continue to be hampered by the delays of the 787.
All in all this is good news; Air India needs to be a low cost at home whilst taking on the Middle East airlines directly overseas. Let us see how this summer goes for the airline.