Entrepreneurs take to the sky with regional airlines

New Delhi: A booming economy, and the profits thereof, is letting a host of entrepreneurs take their goals sky-high, literally. An increasing number of businessmen are entering the aviation business.
Sample this. Kochi-based Emric Aviation is a proposed regional carrier promoted by Martin Sebastian, a Kerala-based real estate and infrastructure developer who has diversified into the hospitality and SEZ development businesses, and digital film production. Says chief executive Muhaimin Saidu, “All one needs to start a regional carrier is good entrepreneurial skills and capital investment. While I have worked as an aircraft engineer, we are a team of people from different backgrounds.”
The company is targeting cities like Madurai, Trichy, Coimbatore and Mysore, and is in negotiations with Bombardier and Embraer for its aircraft fleet.
Emric Air is joined by others like travel firms Air Dravida in Chennai and the Bird Group in Delhi, Indus Air by breweries company Mohan Meakin in the North, Gurgaon-based MDLR Airlines, Star Aviation and Trans India Aviation, who are all set to enter this emerging segment.
Air Dravida is part of Premier Tours and Travel, a ticketing and travel agency company in Chennai, and plans an initial investment of Rs 40 crore in the new business. Air Dravida is eyeing passengers who fly international routes from smaller towns via the metros — say from Trichy or Coimbatore to Chennai onwards to Singapore.
Up North, for the Bird Group — with a background in the travel and hospitality businesses — launching an airline is a natural step forward. The group, which has a joint venture with Amadeus, a GDS player for air ticket reservation and Thai-based Dusit Thani Group of Hotels, does ground handling, airport check-ins and also runs a training academy for the travel industry.
According to the DGCA’s policy on regional carriers, the paid capital for a carrier with three aircraft should be at least Rs 12 crore, which could be increased to a maximum of Rs 20 crore as the airline expands its fleet.
30/11/07 Vishakha Talreja & Shruti Chauhan/Economic Times

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Categories: New Nov 2007, Regional Airlines Nov 2007