Air India is likely to launch its Delhi-Melbourne flight later this year when the national carrier will acquire new Boeing 787 aircraft.

"Air India has proposed to launch direct services to Australia from Delhi commencing from about the third quarter of 2012-13, using the Boeing 787 aircraft, which are expected to be inducted in May this year," a Civil Aviation Ministry official said. 

When these services are in place, Air India would be the only carrier serving the India-Australia market non-stop, he said.

Quantas is going axe unprofitable services from Singapore-Mumbai in May, Traveltechie had earlier reported.

Meanwhile, Victorian Premier Ted Baillieu, who is leading an Australian business delegation to India, met Civil Aviation Minister Ajit Singh today and discussed the proposed launch of direct air services by Air India from New Delhi to Melbourne.

"With sizable Indian population residing in Melbourne, a Delhi-Melbourne direct Air India flight would be in their larger interest and also in the business interest of the two countries," Baillieu said during the meeting.

The non-stop services to Australia would be a cash positive venture after getting various concessions from the Government of Victoria and New South Wales, and AI will operate at over 75 per cent passenger load factor on an average round the year, the AI official said.

Air India is holding fresh negotiations with the governments of Victoria and New South Wales as well as the Airport Authority at Sydney and Melbourne to seek further concessions to make the direct flights cost effective, he said, adding that Baillieu has assured AI for all support in this regard.

According to an estimate, the annual air traffic between India and Melbourne and Sydney is between 1,25,000 and 1,30,000 each. The total number of people moving between India and Australia has been estimated at about 3,35,000 passengers per annum.