Air India is considering becoming a low-cost carrier on its domestic services as part of a plan to restructure its operations in order to get a government bail-out.

“That is one option - becoming a low-cost airline on domestic operations so that it can compete more effectively with the privately-owned carriers, which increasingly offer more low-cost options on most of the domestic routes,” says a spokeswoman for Indian civil aviation minister Praful Patel.

She adds that the state-owned flag carrier could cut costs and increase loads through this measure, and become profitable in the domestic sector. Air India has a low-cost subsidiary, Air India Express, that mostly serves international routes.

Indian government statistics showed that the country’s domestic passen

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