BUSINESS

A-I plans new routes, to hike frequencies

By Rumi Dutta in Mumbai
August 12, 2004 11:11 IST

Flag carrier Air-India has charted out a core route network plan, which envisages kick-starting operations on new routes as well as increasing frequencies in existing prime routes.

The expansion plan is expected to help the airline register a 10 per cent rise in revenue in the current year over the past year. The rise in revenue is expected to translate into a net profit of Rs 125 crore (Rs 1.25 billion) against a profit of Rs 105 crore (Rs 1.05 billion) in the previous year.

A-I is planning to launch new flight operations to Australia, Mauritius and Japan. On the India-US sector, it is looking at starting direct services to San Francisco, Washington, Houston and Dallas while it will be increasing frequencies on the existing routes including Chicago, New Jersey, Los Angeles and New York. Services to Toronto will also be enhanced.

A-I chairman and managing director V Thulasidas said, "We have identified certain core routes and we will only grow in these key markets. A-I's seat capacity has increased by around 80 per cent since December 2002, while on the India US sector the capacity stands doubled to 25 flights per week."

The number of flights operated to the Gulf has increased from 75 to 104 in the last two years.

"We are only looking at certain cities in Europe and not the entire Europe. The prime India-London route will see a major capacity addition. In east Asia there is a demand for new services. China is an emerging market. We would, however, need fresh bilateral agreement for additional flights to Shanghai and Beijing," Thulasidas added.

With healthy demand growth in markets including Hong Kong, Tokyo and Osaka, A-I is contemplating additional frequencies in these markets too.

A-I's current route network includes Chicago, New Jersey and New York in the US, Paris and Frankfurt in Europe, London in the UK, Bankok, Jakarta, Kuala Lumpur, Osaka, Shanghai, Singapore and Tokyo in the Asia Pacific, Abu Dhabi, Al Ain, Bahrain, Dammam, Doha, Dubai, Jeddah, Kuwait, Muscat and Riyadh in the Gulf and Middle East and in Africa -- Dar-es-Salaam and Nairobi.

It operates on several other routes through code-sharing arrangements with other international airlines.
Rumi Dutta in Mumbai

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