Flight path cleared for regional airlines

Bangalore: Regional air connectivity in India has been largely neglected but this is about to change. Paramount Airways, the south-based “only business-classs” regional carrier that operates out of eight destinations, sees this as major encouragement and is looking to further spread wings.
“This way the Centre is inviting more players to start air services to Tier II and Tier III cities, which have been ignored till now,” said managing director M Thiagarajan.
Thiagarajan is expecting the new policy to dole out more incentives, which would make flying to these airports very attractive for airlines.
He sees more players entering the niche market. “It has huge potential”.
Thiagarajan has already drawn up plans to add four more destinations in the next few months. He is also looking at start operations beyond south.
There could also be decline in fares on regional sectors as new players fly in.
Jeh Wadia, managing director of budget carrier GoAir, says there will be no impact on airlines that operate pan-India.
But an analyst with a foreign brokerage said the national carriers will lose out on the business generated from short-hop connectivities offered by longer flights.
10/08/07 Praveena Sharma/Daily News & Analysis

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Categories: General Aviation Aug 2007, New Aug 2007