India's no-frills budget airline to take wings in August

Tuesday, 15 April 2003, 19:30 IST
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NEW DELHI: A low-cost, no-frills airline that will link remote corners of India is finally set to take wings in August. Deccan Aviation, a Bangalore-based firm run by a small group of former military pilots, has received the official approval to start the economical regional airline services in southern India. The company is planning a low-cost operation. The aircraft will have minimum number of cabin crew and no meals will be served and as a result the fares will be a tad higher than the prices of top-line seats on India's luxury trains. "All the frills like in-flight services and posh interiors will be kept to the minimum. This will ensure that the fares are slightly more than that for a ride in a luxury train," said G.R. Gopinath, managing director of Deccan Aviation. "We plan to wean away the top end of the air-conditioned rail passengers. Our services will also be used by businessmen who have set up operations in remote corners that are very poorly connected," Gopinath told IANS. The company has already imported six 50-seater twin-engine turbo-prop aircraft with an investment of $84 million. The airline will connect remote destinations in the states of Tamil Nadu, Karnataka, Andhra Pradesh and Kerala with major cities like the country's financial capital Mumbai, Bangalore and Goa. "A low-cost airline needs small airports, and aircraft that have a quick turnaround to keep flying for more number of hours, resulting in more number of flights. We are working towards achieving this," Gopinath said. He said the airline did not intend to compete on routes run by existing operators. Gopinath, a former captain of the Indian Army's aviation wing, said the airline would tie up with other companies to outsource most of the ground handling operations to cut costs. "It will be a city specific arrangement. We will not get into areas that will require us to maintain a large base of employees," he said, adding that Deccan will expand services in the south first before foraying into other regions. The airline will count on the low number of support staff such as airport assistants and ticket clerks. Deccan Aviation, with a fleet of nine helicopters and two 11-seater aircraft, already runs charter services for corporate houses, politicians and other high net-worth individuals around the country. Gopinath, a Japanese investor and an Indian entrepreneur own the company, which hires pilots retired from the army, navy and air force. Most pilots also double up as managers and marketing executives to trim costs. Gopinath said the budget airline had a huge potential market, and globally such airlines had proved in recent times to be one of the few growth areas in the troubled aviation industry. "If you look at the global aviation scenario, the low-cost regional airlines are even grabbing market share from the more traditional carriers. In India, air travel must become cheaper and available to more and more people. "India needs low cost airlines, especially in remote cities that require connectivity for the promotion of business. The number of general air travellers will grow only when smaller cities are connected with major ones."
Source: IANS
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