Air India is planning to spend Rs 35,000 crore to buy 68 new aircraft to compete with rival airlines in India, Air India Chairman Thulasidas said on Friday.
The airline plans to expand its network across the nation besides enhancing the frequency of flights in its existing schedule.
With the expansion, nearly 48 existing aircraft of Air India would be grounded gradually, he said while talking to reporters.
Air India recorded 66 per cent growth in its passengers besides enhancement in business from Rs 32 crore to Rs 52 crore in recent times, leading to its expansion, he added.
Air Indian would shortly also convert some of its existing aircraft into cargo to lift agriculture products and fresh vegetables from Punjab to facilitate the farmers who can export their produce.
With the passage of time, if good response was received in the cargo business, Air India would then get more cargo aircraft on lease, the chairman said.
Announcing three more flights from Amritsar, Thulasidas said that Air India would increase the frequency of its flights from three to six for Toronto from May this year as there was significant increase in the flow of passengers particularly from Punjab.