Amid competition from three budget carriers in the dometic market, Indian government-ownedd Air India is planning expanding operations of its international low-cost arm AI Express in the domestic market. In addition to the already operating three budget carriers, AirAsia India also expected to compete by year-end with launch of its operations in India.    

AI Express has recently set up a three-member committee to explore the feasibility of such an expansion plan. Air India sources said that  it has set up a committee and mandated it to explore the possibilities of Air India expanding its operations in the low-cost carrier (LCC) segment.    

In last July, Air India regained its third slot with 19.2 per cent market share beating budget carrier SpiceJet's 17.5 per cent share. At the same time, the Delhi-based IndiGo continues to retain its leadership with 29.5 per cent market share in the month. However, the three low cost domestic carriers-IndiGo, SpiceJet and GoAir combined enjoy 55.5 per cent market share as against 44.5 per cent of the two full service carriers Jet Airways group and Air India.    

With its fleet of 21 Boeing 737-800s, Air India Express, which began operations as the international budget arm of Air India in 2005, today operates 172 flights a week across Southeast Asia and the Gulf region and commands 5-6 per cent market share.Majority of AI Express flights originate from Kerala, which contributes over 50 per cent of its income.