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In order to qualify for a government bail-out, Air India may switch its business model and become a budget carrier on domestic services.

Air India To Become A Budget Carrier On Domestic Operations

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In order to qualify for a government bail-out, Air India may switch its business model and become a budget carrier on domestic services. A spokeswoman for Indian Civil Aviation Minister Praful Patel said that Air India can compete more effectively when it becomes a low-cost airline on domestic operations with the privately owned carriers, which increasingly provides more low-cost options on most of the domestic routes.

She said that this transformation would assist the state-owned carrier to cut costs, increase loads and become more lucrative in the domestic sector.



Last Updated: 2009-07-03T10:07:28+05:30

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