Air India plans to service Australia

Air India is targeting the large Indian market living in Australia with the likely launch of its Delhi-Melbourne flight at the end of this year, when the airline acquires new Boeing 787 aircraft.

This move made by the national carrier will make Air India the only airline to service the India-Australia market non-stop, the Economic Times reported.

Victorian Premier Ted Baillieu recently met with Civil Aviation Minister Ajit Singh to discuss the proposed launch.

"With sizable Indian population residing in Melbourne, a Delhi-Melbourne direct Air India flight would be in their larger interest and also in the business interest of the two countries," Mr Baillieu said.

According to recent data, the annual air traffic between India and Melbourne and Sydney is between 1,25,000 and 1,30,000, while the total number of people travelling between India and Australia is about 3,35,000 passengers each year.

An Air India Official said the direct services to Australia would be a lucrative venture once obtaining concessions from the Government.

He added that the airline will operate at more than 75 percent passenger load factor on an average throughout the year.

The Airline is currently negotiating further with both the Victorian and New South Wales governments and the Airport Authority at Sydney and Melbourne to obtain concessions to ensure the venture is profitable.