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The board, which met here today, also accorded its permission to the airline to launch air services to Iranian capital Tehran from early next fiscal, sources said.
AIE is the international budget arm of the national carrier Air India.
"Air India Express Board has given its green signal to the airline to operate codeshare flights with Air India. It has also given its approval to the proposed air services between New Delhi and Tehran from early next fiscal," sources privy to the information told PTI here.
The pact would allow AIE to sell tickets and book passengers from the cities from where it does not fly, they said, adding, "Codeshare flights with Air India will be operated from 5-6 tier-II cities to begin with."
Code sharing allows an airline to book its passengers on its partner carriers and provide seamless transport to destinations where it has no presence.
AIE Chief Executive Officer K Shyamsundar had also month said that most of the issues pertaining to the launch have been sorted out and the airline was in the process of finalising a General Sales Agent (GSA) and cargo handling firm for this purpose.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)