Air-India to float IPO in 3 months

Air-India has decided to tap the capital market, in the next three months for funding its expansion plans, Air-India's Commercial Manager K D Row said on Thursday. The state-owned airline also plans to start direct India-US flights in early 2007, he added.

"The IPO will be to fund the massive expansion and fleet acquisition programmes of Air-India," he said. Air-India also plans to increase services of its low-cost airliner Air-India Express to the Gulf countries.

"We will soon have flights from Chennai to Malaysia and Singapore through Air India Express," Row said.

By mid-May, Air-India will start a direct tri-weekly flight to Mauritius, which will be later extended up to Johannesburg in South Africa.

Air-India also plans to start direct flights to San Francisco from either Mumbai or Delhi.