Amid slowdown, 32 firms get nod to operate non-scheduled flights

Mumbai: Despite a slowdown in Indian aviation, the coast is now clear for more than 30 companies to launch non-scheduled passenger airlines in the country.
The ministry of civil aviation has in the past four months alone issued at least 32 no-objection certificates, or NOCs, to firms that applied to operate non-scheduled passenger carriers—including large companies such as Bajaj Auto Ltd, Ashok Leyland Ltd and Hiranandani Aviation Pvt. Ltd. Non-scheduled carriers do not publish timetables, operating piecemeal for each flight, usually on routes not serviced by scheduled airlines such as Jet Airways (India) Ltd or Kingfisher Airlines Ltd.
This boom in non-scheduled operations is occurring at a time when scheduled domestic carriers are expected to report a combined loss of $2 billion (Rs9,380 crore) for the fiscal year that ends in March—largely due to higher jet fuel costs and falling passenger numbers.
“People are waiting for the market to (get) back in shape. They are getting ready with the licence and necessary infrastructure,” said Koustav M. Dhar, executive director of MDLR Airlines Pvt. Ltd, which runs charter operations on a non-scheduled licence and regional operations in north India under a scheduled licence.
Companies such as Reliance Commercial Dealers Ltd, Punj Lloyd Aviation Ltd, Welspun Logistics Ltd, Gujarat Adani Aviation Pvt. Ltd, Sun TV Network Ltd, GVK Aviation Pvt. Ltd and GMR Aviation Pvt. Ltd have earlier secured licences for non-scheduled passenger flights.
Currently, there are more than 160 non-scheduled operators, including passenger and charters. However, the charter aviation market is highly fragmented, with some 32 charter carriers operating a fleet of no more than two aircraft.
However, Ramachandran Iyer, executive director of Chennai-based airline Air Dravida, a division of Premier Tours and Travels (Chennai) Pvt. Ltd, questioned the number of serious players in the new list, and said NOCs are liable to being misused.
"....But there are a lot of serious players. At least six new full-fledged players will be there in this space with decent fleet size by next May,” said an executive with a Delhi-based charter operator.
30/09/08 P.R. Sanjai/Livemint

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Categories: Indian Aviation- In General Sep 2008, New Sep 2008