Air Waves

AI Express targets domestic services

Domestic operations aimed at creating hub and spoke template

Bhisham Mansukhani - Mumbai

Air India Express is on track for its mandate to launch domestic operations following a successful launch of Middle East frequencies and the pending launch of Southeast Asian frequencies. The move is driven by its holding company Air India's aim to set up a hub and spoke template as well as tap the increasing traffic on trunk routes. Air India Express currently flies the Boeing 737-800 and according to Air India CMD, V Thulasidas, the airline will stick to that configuration as it adds to the existing fleet.

"When we envisaged this airline, we decided that it would fly to the Middle East and SE Asia. The board of directors also decided that following this, domestic operations will then become a priority. There are also some fundamental reasons for this. Air India Express will help us create a hub-and-spoke model thereby reducing our interline dependency and give more access to passengers from satellite cities to long haul destinations. Tapping the growth of domestic traffic is also a driving factor," says Thulasidas. The domestic sectors will be determined on the basis of which locations would Air India need a feed from. Some of the domestic trunk routes that Air India has been witnessing high load factors will also be part of the carrier's network.

Thulasidas says he is satisfied with the current load factors which he claims are far higher than the levels AI witnessed on the same routes. Despite fares on Air India Express being 25 per cent lower, the airline has already broken even and made a profit in under a year of operation, having launched in May this year.