Alliance Air to revamp operations

19 May, 2007: In an attempt to restructure its operations as a low-cost carrier, Alliance Air-fully-owned subsidiary of Indian--is planning a fleet expansion drive.

The airline is currenty looking at options to phase out its ageing Boeing 737s. Observers said that the new strategy is in line with Indian’s plan to induct two wide-bodied Airbus A330 aircraft and the merger with Air India.

A report said the airline has already taken the plunge by dropping one aircraft from the fleet for conversion into a freighter. News articles quoting officials said that the airline might shift to an internet-based distribution model, curtail in-flight catering and go in for optimum utilisation of crew as well as aircraft.

Besides, new flights would be introduced to connect regional routes and the airline would do only point-to-point operations like a typical budget carrier. The airline would try and connect medium-haul routes which do not justify deployment of 100-seater aircraft through regional jets with 70 seats. At least half-a-dozen regional jets are under consideration.

According to the report, the regional jets would be put into service by Alliance this winter season. The airline, in line with the revamp plan, has also reportedly begun snipping its in-flight catering services. It would either do away with in-flight catering or charge for the services, a source said.

The new revamp is aimed at converting Alliance Air into a profit-making business unit with a key role in the mega entity that would be formed by the merger of Air India and Indian. The merged entity is expected to have independent units handling cargo and maintenance services apart from a full-service carrier, reports added.