Air India Express, Alliance Air to merge and operate as low-cost carrier for new entity

Mumbai: Air India Express will assume responsibilities as the low-cost carrier (LCC) for the newly merged entity Air India, according to chairman and managing director, Air India, V Thulsidas.

"Alliance Air and Air India Express will join as one company, called Air India Express, which will operate as low-cost carrier on domestic as well as international routes," Thulasidas told reporters. He was speaking on the occasion of Air India Express inducting the seventh Boeing 737-800 in its fleet. With the induction, the airline's fleet size goes up to 14, of which seven are on lease and the rest owned.

According to Thulsidas, the low-cost carrier will eventually have 25 aircraft by next year. The aircraft will come to its fleet from the existing Air India Express, and will also include the leased ones. The leased aircraft are under a five-year contract, he added.

The newly formed LCC would also take on four ATR aircraft from Alliance Air. However, plans to induct more regional jets and ATRs were also on the anvil, Thulsidas said.