Air India to launch domestic LCC under Alliance Air brand

Air India reportedly plans to launch a domestic LCC under the Alliance Air brand (Business Standard, 29-Jul-2011). The carrier's board has reportedly provided in-principal approval to transfer 14 A320s to the subsidiary as part of efforts to better compete with the nation's fast growing LCCs such as SpiceJet, IndiGo and GoAir. Jet Airways operates 60-75% of its capacity through its low-cost subsidiaries. Air India is the only carrier not to operate a domestic low-cost service. The A320s to be transferred reportedly have an average age of 15 to 20 years.