It’s never easy to operate an airline. What’s more, when it's a regional airline, things become all the more difficult. The recent suspension of operations by two regional airlines within a span of seven days amplifies this point. Air Pegasus and Air Costa nearly went belly up, suspending their operations till such time they could cough up more money.
While Air Costa, the Vijayawada-based airline, has partially restarted operations, the Bengaluru-based Air Pegasus, at the time of going to press, was yet to do so. The troubles at both airlines are far from over.
As per industry sources, two other regional airlines, all based out of the South, are facing a tough situation with one incurring a loss of ₹2 crore per month. For the regional airlines, it’s turning out to be a regular feature – a constant battle between keeping their operations running and at the same time pouring money to keep the lessors at bay.
Unfortunately, these temporary band-aids if allowed for some more period can only lead to dwindling passenger numbers and eventually closure.
For regional airlines, the battle of survival is all the more difficult compared with that of national carriers because they bank on convenience and less on speed and cost of travel. A majority of Indians don’t mind putting up with some inconvenience as long as they reach their destinations paying as less as possible. Also, as most of the Tier-two cities can be reached within six or seven hours, the time has not been a factor for most of the passengers.
The regional airlines are also up against a host of issues not of their own making. The airport charges for the regional airlines are similar to those of the national carriers. A private airport charges as much as ₹750 per passenger and if one adds up landing and parking charges, the total charges can go up to ₹1,000 per passenger which is about 40 per cent of the total fare.
10/08/16 K Giriprakash/Business Line
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While Air Costa, the Vijayawada-based airline, has partially restarted operations, the Bengaluru-based Air Pegasus, at the time of going to press, was yet to do so. The troubles at both airlines are far from over.
As per industry sources, two other regional airlines, all based out of the South, are facing a tough situation with one incurring a loss of ₹2 crore per month. For the regional airlines, it’s turning out to be a regular feature – a constant battle between keeping their operations running and at the same time pouring money to keep the lessors at bay.
Unfortunately, these temporary band-aids if allowed for some more period can only lead to dwindling passenger numbers and eventually closure.
For regional airlines, the battle of survival is all the more difficult compared with that of national carriers because they bank on convenience and less on speed and cost of travel. A majority of Indians don’t mind putting up with some inconvenience as long as they reach their destinations paying as less as possible. Also, as most of the Tier-two cities can be reached within six or seven hours, the time has not been a factor for most of the passengers.
The regional airlines are also up against a host of issues not of their own making. The airport charges for the regional airlines are similar to those of the national carriers. A private airport charges as much as ₹750 per passenger and if one adds up landing and parking charges, the total charges can go up to ₹1,000 per passenger which is about 40 per cent of the total fare.
10/08/16 K Giriprakash/Business Line
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