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Air India braces up for Jet’s Gulf entry
POSTED: 9:35 a.m. EDT, September 17,2007

Air India is not worried about the Government decision to allow Jet Airways to start operating flights to the Gulf region from early next year.

Speaking to Business Line soon after the Government decision was made public, the Air India Chairman and Managing Director, Mr V. Thulasidas, said that the airline was ready to take on competition.

The airline has already drawn plans to increase flights to the region which should start during the forthcoming winter schedule,” Mr Thulasidas said.

The airline has embarked on a plan of inducting more aircraft and along with its low cost subsidiary Air India Express plans to expand its footprint in the region.

More flights

Further, the airline is planning to operate three additional flights on the Kochi-Kozhikode-Doha route thereby offering passengers the option of a daily service, apart from starting flights between Jaipur and Lucknow to Dubai.

Plans are also being drawn up to operate three times a week on the Mumbai-Nagpur-Dubai-Nagpur-Mumbai sector and the Mumbai-Goa-Dubai and return sectors.

These flights are to be operated by Air India Express.

The airline also plans to make better use of its aircraft and utilise the Boeing 767 and Airbus A-310 to operate flights to the West Asia and Saudi Arabia, officials said.

Besides, the airline is to receive four Airbus A-321 aircraft that are to be utilised to reintroduce the Hyderabad-Sharjah connection.

Gulf route

The Gulf route, over which the state owned airlines have a monopoly, generates large amounts of revenue for them. During 2005-06, the Gulf route was the second largest revenue generator for Air India from among the global routes on which it operates.

The airline earned Rs 1,591.04 crore from the sector in 2005-06.

In December 2004, while allowing private sector airlines to operate abroad, the Union Cabinet had mandated that a moratorium on their flying to the Gulf was to be in place till December 2007.

At present, Air India and its subsidiaries are allowed to operate flights to various regions in the Gulf including United Arab Emirates (UAE), Qatar, Oman, Bahrain, Kuwait and Saudi Arabia.

Late last week the Ministry of Civil Aviation allowed Jet Airways to start operating 70 flights a week to Kuwait, Oman, Qatar and Bahrain from January 1 next year when the ban on private airlines flying to the Gulf is to expire.

From: businessline
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