No-frills airline Air Deccan on Wednesday launched its operations on the profitable trunk routes at slashed rates to take on major domestic airlines, while announcing that it would increase its fleet strength to over 33 aircraft from the existing nine in two years.

"We have signed for acquiring 11 airbus aircraft and also an additional five ATR aircraft, which will add to the existing six ATRs," Air Deccan managing director G R Gopinath told reporters in Bangalore.

Air Deccan creates history

He said five Airbus aircraft had been leased from a Singapore firm, while the airline would buy six aircraft from Airbus, of which order for two were firmed up recently.

Air Deccan, Gopinath said, had earned a revenue of Rs 70 crore (Rs 700 million) during 2003-04, the first year of its operations, and aims to quadruple revenues to Rs 500 crore (Rs 5 billion) this fiscal.

"We have achieved break even four years ago. We will earn modest profits this fiscal," he said.

Gopinath said the airline faced hurdles from established players when it announced its intention to expand into trunk routes from being a low cost airline in feeder routes.

"Everyday we have faced obstacles. They need to cut their flab and be competitive, they can't play political games," he said.