Now, NACIL set to tap regional market with ?Air India Kshetriya?

National Aviation Company of India Limited (NACIL), formed after the merger of Air India and Indian Airlines, will rebrand all its turboprops and Bombardier regional jets (BRJs) Air India Regional or Air India Kshetriya.

This rebranded fleet will mainly consist of the four turboprop (ATR) aircraft presently flying under Alliance air and four Bombardier regional jets (BRJs). The BRJs have been leased by Air India and are expected to be delivered by the mid October. ?The new brand would be a part of Air India but may not necessarily apply for a regional licence separetely or operate as a regional carrier,? soources said. The inaugral flight of Air India Regional is expected to be September 20 from Delhi to Kanpur.

Other flights in the pipeline are going to connect Delhi to Kulu on September 23 and Delhi to Allahbad later this month, sources said. The four ATRs flying under Alliance Air in the north eastern sector will be rebranded Air India Regional on one side and Air India Kshetriya on the other.

This brings the total number of brands under NACIL to four including the main carrier Air India, the low cost carrier Air India Express, regional carrier Air India regional and Air India Cargo for freight. While 7 of the Boeing 737s under Alliance Air have been converted to freighters the rest are expected to be phased out soon.

Alliance Air, formed in 1996, mainly to accommodate the Boeing pilots of Indian Airlines?, failed to fulfill its original objective of serving the regional air travel market. The airline was also plagued by the fact that its fleet, mainly, Boeing 737s is ill equipped to operate in regional airports and not best suited for short duration flights. In addition, its four ATR aircraft could not be pushed in to service elsewhere as they are positioned to serve the North East market.

Air India Regional would operate using the Alliance Air or Air India numbering and therefore will not be a separete airline or subsidiary, sources added.

The fleet of the new airline will mainly consist of the four turboprop (ATR) aircraft presently flying under Alliance air and also four Bombardier regional jets (BRJs). The BRJs, leased by Air India are expected to be delivered by the mid October. The inaugral flight of Air India Regional is expected to be on September 20 from Delhi to Kanpur.

As per the recently drafted government norms, regional airlines would be required to pay lower landing and parking charges and as announced in the 2007-08 Budget aircraft, both turboprop and jet, below the weight of 40,000 kg would be able to purchase aviation turbine fuel attracting only 4% sales tax.