Air India Express is exploring commercial partnerships with other airlines and looking at routes in South East Asia to de-risk itself from the slowdown in West Asia business.
Air India Express is low cost arm of Air India and deploys 85 per cent of its capacity on West Asia routes.
The airline reported a profit of Rs 362 crore in FY 16 aided by lower fuel prices and improved revenues. This year profit is expected to be lower and the airline is likely to miss its annual revenue target of Rs 3,550 crore because of muted demand from West Asia market.
"We have been a point to point carrier and there are pressures created by capacity growth. We are open for partnerships with other airlines to grow our business and gain access to other markets," said the airline's chief executive officer K Shyam Sundar.
Air India Express already has a code share partnership with Air India. It is launching a Delhi-Dhaka service offering connections to passengers from Europe. The airline is also exploring new connections in South East Asia and East Asia to de-risk itself from slowdown in West Asia. "We have not thought of long haul operations at present," he added.
Air India Express has 23 Boeing 737 at present and will add two more planes in 2017. Currently, the airline flies to 15 international destinations including Dubai, Sharjah, Abu Dhabi, Bahrain, Doha and Singapore.