Dubai-based NRI gets nod for regional airline

New Delhi: A Dubai-based NRI has become the first to get a licence for operating a low-cost regional airline in India.
The carrier, Star Aviation, will begin operations with a fleet of four ATRs by mid-2008 in south India. While this has become the first airline to be allowed under the recently-allowed regional airline policy, applications of at least four other aspirants are also under consideration of aviation ministry.
"Dubai-based Syed Mohammad Salahuddin and his son, both NRIs, were found to be among the most financially strong and experienced players to have filed applications for a regional airline. They have a $3.8 billion business empire and also run a company that has been leasing planes to Air India. They are also GSAs for most airlines in Dubai," said a senior official.
Salahuddin senior was earlier this year given the Pravasi Bharatiya Samman award. Star Aviation will use ATR 42 and ATR 72 and begin operations with four such planes.
These planes will fly between south Indian cities like Bangalore, Chennai, Madurai, Trivandrum, Kochi, Vizag, Hyderabad and Bangalore. Being an LCC, its primary competition will be other low fare carriers like Deccan, SpiceJet and IndiGo.
The other airlines whose applications for regional airlines are under consideration are MDLR and Jagson in north and Trans Asia and Air Dravida in south.
08/12/07 Times of India

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