Indian flights firm 'to be hived off'

The division of India's national air company that offers cheap flights will be spun off into a separate company, reports suggest.

By Southall Travel -Thursday, September 16, 2010 05:50 PM

Air India Express (AIE), a company offering cheap flights to India, will be spun off from parent organisation Air India as part of a drive to push down costs, it has been claimed.

The Economic Times reports that a new CEO is set to be brought on board within the next couple of weeks.

Gustav Baldauf, chief operating officer of Air India, told the news provider: "By next summer schedule, restructuring operations of AIE will be complete and it will fly to domestic destinations too."

The move to reshape activities at the airline offering cheap flights to India comes after the company had to cancel a number of flights as a result of fewer bookings.

Earlier this month, Jet Airways was rewarded for its business class travel offering, at an awards ceremony in New Delhi.

The company said the prize was testament to the company's commitment to offering the best quality of service to its customers.

Posted by Ruth Norris ADNFCR-1809-ID-800068544-ADNFCR

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