Regional airlines: Not ready for takeoff

New Delhi: Despite the ministry awarding initial ‘no objection certification’ to Star Aviation (south), Jagson Airlines (north) and Zav Airlines (east and northeast), none of these operators has found the regional airline concept lucrative enough to begin services.
This, despite a host of concessions offered for regional services — waiver of airport charges, cheaper jet fuel etc.
Koustav M Dhar, COO and director for MDLR, told DNA Money that his airline is planning to add aircraft to the current fleet of three carriers and infusing Rs 50-70 crore over the next few months to expand operations.
Not just regional airlines, even the modernisation work of 35 non-metro airports is hanging fire.
The Airports Authority of India (AAI) has raised objections over the role of private parties in the commercial operation and maintenance of terminal buildings at these airports. This has delayed modernisation as fresh bids will have to be called from private developers for city-side development.
Even the ground-handling policy, which was to become operational by January 1, 2009, appears to have been pushed back on objections from private airlines and trade unions.
17/12/08 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Indian Aviation- In General Dec 2008, Regional Airlines Dec 2008