Air India Express looking to launch low cost operations

"Air India Express is considering launching of low cost operations. The commercial viability of the sectors to be operated are being ascertained, after which the sector would be identified," Civil Aviation Minister Praful Patel said in a written reply to the Rajya Sabha.
Air India Express currently operates as low-cost carrier of the Air India on international routes, mainly offering services to and from the Gulf countries.

Patel also said that Air India may initiate a feasibility study to start operations and maintenance of smaller capacity aircraft to Tier-IV cities.He was replying to a question on whether the government is planning to revive Vayudoot, which used to fly smaller aircraft in the 1980s to increase connectivity in smaller cities across the country.

The loss-making airline, which was merged with the then Indian Airlines in 1993, was originally conceived to serve the north-east region of the country. Later, it had started operations from 100 destinations.

Replying to a separate question, the minister said that Airport Authority of India (AAI) has sought compensation for revenue loss suffered due to the closure of commercial operations at Hyderabad and Bangalore.