GVK has feeder airline plans, to operate from small city airports

Airports developer GVK Power & Infrastructure Ltd has teamed up with a domestic carrier to launch a new airline to capitalize on the country’s aviation and airports boom, focusing especially on 35 tier-II city airports across the country where airports are up for modernization bids.
The proposed airline will connect the district capitals of various states to their state capitals or the nearest metro using small aircraft that seat around 70 passengers or less. The company said it would launch the airline service only in states where it wins bids to develop airports.
“We have already tied up with a domestic liner whose name I would not like to disclose,” said G.V. Krishna Reddy, chairman and managing director, GVK Power, in an interview with Mint.
“While they (the domestic carrier) will do the flying, we will handle all the management functions (of the airport) while someone else may handle the commercial operations,” he added.
According to people familiar with the situation, GVK could be one of the companies that General Electric Co. is speaking to for developing various airports that are being thrown open to the private sector for upgradation and development .
Reddy said GVK would float a new joint venture firm along with its partners to develop the airports and operate the airline. Reddy declined to further elaborate on the new company’s operations.
29/05/07 Utpal Bhaskar and C.R. Sukumar/Tarun Shukla/Livemint

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Categories: Airports May 2007, General Aviation May 2007, New May 2007