Small plane makers woo start-up airlines with attractive packages

New Delhi/Mumbai: A month after the Union government unveiled a new policy for regional airlines, makers of small planes that can carry up to 100 passengers are wooing aviation start-up firms that could end up as big buyers of such aircraft.
Three airlines in South India—Air Dravida, EmricAir and Star Aviation—have applied for a regional airline licence from the ministry of civil aviation, with another half a dozen expected to follow suit. These airlines, together with the existing scheduled carriers, are expected to buy at least 300 aircraft in the next few years, the ministry estimates.
Small jets and turboprops, priced at between $20 million and $40 million (Rs80 crore and Rs160 crore) before discounts, capable of seating 40- 100 passengers, are considered ideal for regional carriers given the short hops they fly and the fuel efficiency offered.
Such planes are mostly made by Brazil’s Brasileira de Aeronáutica SA, better known as Embraer, Canada’s Bombardier Inc. and Frenchturboprop maker ATR, a subsidiary of Airbus SAS. Just 13 regional jets from Embraer and Bombardier are part of the country’s fleet of more than 250 aircraft currently.
Regional airlines are being wooed with attractive packages, said the chief executive of a full-service airline. “The range of discount depends upon deep pockets and expansion plans,” said the CEO, who did not want to be named.
25/09/07 Tarun Shukla and P.R. Sanjai/Livemint

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Categories: Foreign Sep 2007, New Sep 2007, Regional Airlines Sep 2007