Air India expands fleet after 2006! Plans to add 25 aircrafts

Air India wants to make the most of government’s new civil aviation policy and has plans to add 25 aircrafts to its fleet to promote regional connectivity.

The government’s new aviation policy proposed to boost regional connectivity and Air India’s move to cater to underserved regions has come on a perfect time.

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Air India had placed an order for 111 aircraft in 2006. Out of these, the airline has inducted 102 and nine aircrafts are still to be inducted.

Meanwhile, the expansion is expected to increase the market share of the national carrier, which is the third-largest domestic carrier in India
with a 15.9% market share in September.

"A lot of business travellers from the small and medium enterprise sector will surely be looking to shift from other modes of transport to flights, if it is available at the right price point. This is the right time to move towards expanding into the smaller cities as the fares are low on the back of lower fuel prices," Sharat Dhall, president at Yatra-.com, India's second-largest online travel portal, told ET.

Air India has losses of Rs 20,000 crore and is doing everything to become profitable by 2018-19.

(Image: Indiatimes)