Civil Aviation Minister Praful Patel had told Parliament last month that Air India's no-frill subsidiary would compete for a space in the low-cost carrier market.
"In order to compete effectively with other domestic low fare carriers, and to get a share of the low fare market segment, Air India is considering a proposal to extend low fare services to some of the domestic routes also," Patel had said.
Air India itself would, however, not lose its full service carrier character. Air India Express currently operates on short haul international routes covering the Gulf and South-East Asian countries.
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