UNI

Mumbai, June 12: Plans are afoot to launch a low-cost air service ''Air India Express'' on domestic routes post merger of Indian with Air India.

''We are already successfully running our budget service, Air India Express, internationally, and this Air India Express will run a domestic service also after Air India's merger with Indian,'' Air India chairman V Thulasidas said on the sidelines of an aviation conference here today.

So far, Air India Express has been running profitably, unlike the operations of budget airlines across the world, which are barely making profits, or running losses. On an average, its fares are 25 per cent cheaper than normal ones, he said adding the national carrier may even consider operating a long-distance international budget service if the operation was found viable.

Thulasidas said Alliance Air, a subsidiary of Indian, would be merged with Air India Express to provide the budget service.

Alliance's fleet of six to seven Boeing 737-200s would, however, be taken off from passenger service and would be converted into freighters for the national carrier's cargo service.