Aircraft shortage forces firms to put off regional airline plans

New Delhi: The plans by several start-up firms to launch regional airline services in India have been hit by a paucity of aircraft—of the short-haul jet and turboprop variety—in the market, and are now likely to launch operations later this year or early next.
While Kolkata-based start-up airline ZAV Airways Pvt. Ltd has already missed its proposed launch in April and plans to start services by August, the country’s first licensed scheduled regional airline to be run by Star Aviation Pvt. Ltd, backed by the $4 billion (Rs17,040 crore) Dubai-based ETA Star group, has told the government it expects to start operations only next year, against 2008.
Globally, planes like the Italian-French manufacturer Avions de Transport Regional or ATR-made ATR-42 and ATR-72 along with Boeing Co.’s 737 NG and the A320 manufactured by Airbus SAS are in short supply, an executive with a leasing firm said.
Demand from India for ATR planes is also strong given a 41-strong fleet in Indian skies—of the more than 600 planes operated by the country’s carriers—and a strong inventory of spares and local engineering expertise.
ZAV Airways said it is finding it difficult to lease turboprop planes and to even buy other jets, with delivery schedules packed until next year. If the airline still manages to secure ATR deliveries, it will go with that plane or else switch to Embraer-made aircraft like Star Aviation, said Kishor Zavery, chairman of ZAV, confirming talks and negotiations with the Brazilian manufacturer.
20/05/08 Tarun Shukla/Livemint

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Categories: Regional Airlines May 2008