Airlines are going regional

After the success of Paramount Airways, more carriers want to fly on regional circuits, reports CNBC-TV18.
Three new carriers, Air Dravida, Star Aviation and Emric Air are waiting for licences to fly the southern skies. And as tier-two cities in the South emerge as a hot destination for it, airlines are not complaining.
"For over 40 years, it was believed that the airline traffic existed only in metros. They underestimated the disposable income in regions and the need for infrastructure in various regions," said Ram Chandran, Executive Director, Air Dravida.
The Ministry of Aviation has issued a separate operator permit to promote regional airlines. To qualify, an airline should operate between airports of any four regions and have a base in a metro of one. Airlines in the South will have an advantage because they can operate in the three Southern metros, as well.
Since regional carriers normally use smaller aircraft that consume less fuel, they have come in for a few sops. They get a 4% discount on sales tax on fuel and are exempt from paying night landing charges.
28/09/07 Moneycontrol.com

To Read the News in full at Source, Click the Headline

Categories: New Sep 2007, Regional Airlines Sep 2007