Eyeing the higher class rail passengers, national carrier Air India (AI) has decided to add over 50 aircraft to its fleet during the next year. The AI plans to start leasing aircraft every month from next year January onward.
Chairman-cum-Managing Director (CMD) Ashwani lohani, who completed one year at the helm recently, said on Thursday that after registering operational profit zone for the first time in two decades, the Air India will go in for ‘territorial expansion’.
lohani told The Pioneer that new aircraft like A320, Dreamliners, and ATRs will be added on lease almost every month beginning January 2017. The national carrier has decided to go for leasing of the aircraft for financial viability.
For the domestic market, the airline will also get 10 more ATR-72 by the end of March 2017. By mid-2018, the total numbers of ATRs will be 43. AI Express, which currently has 17 Boeing 737s, will get 18 more similar Boeings.
lohani said that in its 'territorial expansion' mode, the AI will focus on Tier-II and Tier III cities with an innovative network titled “Garland Route” where even private carrier are not present.
Garland Route for instance will connect Guwahati to Delhi via Kolkata, Raipur, Bhopal, Indore, Jaipur and vice versa, he said, adding the AI believes that smaller but significant cities like Surat, Chandigarh, Indore, Nashik, Jaipur, Bhopal, Jabalpur, Nagpur, Vijyawada and others will become businesses hubs.
This will be a good opportunity for the AI to tap on new business opportunities. The newly-launched service between Jabalpur and Hyderabad has been remarkable success for the AI, he added.
"We want to connect smaller cities which are growing business centres. logistics for similar routes are being worked out. We will get out of the practice of connecting smaller cities to bigger cities or metros. let it be smaller to smaller cities. The Government is also emphasising on providing affordable air connectivity to smaller cities," lohani said, adding that such steps will also add on new job opportunities.
The AI management has decided to augment its existing fleet of 132 to 232 in the next five years. The Air India Group comprises parent the AI, the Air India Express and Alliance Air. The AI currently has 41 Boeing including 747, 777 and 787 aircraft. "While some of them will be for domestic and Indian sub-continent, a new international route -- New Delhi-Madrid and direct New Delhi to San Francisco -- will be introduced into service," lohani said.
With a dedicated focus on increasing revenue for the loss-making AI, lohani claimed to have taken some innovative steps like cost reduction and dropping air fares. The national air carrier recently announced that passengers of second AC Class of Rajdhani trains with waitlisted ticket can avail of the AI services on the same fare of Rajdhani on the first-come-first-serve basis.
Such initiatives have triggered a virtual fare war between the airliner and railways which last week introduced the controversial surge pricing in Rajdhani and Shatabdi trains. lohani is senior railway official who last year was appointed as AI CMD by Prime Minister Narendra Modi.
According to Director General of Civil Aviation (DGCA), Indigo has a market share of 39.8 per cent followed by Jet Airways 16.3 per cent, Air India 14.8 per cent and Spice Jet at 11.7 per cent.