Cuckoo Paul

Air India’s first of six grounded aircraft will resume commercial flights Wednesday on domestic routes and May 22 on international routes, India’s minister for civil aviation Ajit Singh said Tuesday.

In a move to bring Indian air fare structures in line with most of the world, the Directorate General of Civil Aviation (DGCA) is allowing carriers to unbundle their fares and services.

Air India is preparing to have its six Boeing 787s back into service by the middle of May, according to airline officials in Mumbai.

India’s domestic air traffic has remained stagnant through the first two months of the year despite discounting by airlines.

AirAsia is a step closer to launching a domestic airline in India.

In the worst-ever performance of any regional market in July, India’s domestic air traffic fell 1.1% compared to a year ago, according to IATA’s monthly traffic report. The figures are in sharp contrast to 2010 and early 2011, when the region was among the fastest growing in the world and enjoyed 20%-plus growth rates.

AirAsia said its new Indian budget carrier—a joint venture between AirAsia Berhad and Tata Group—will launch by the fourth quarter, pending regulatory clearances.