Loss-laden MDLR puts flight operations on hold

New Delhi: MDLR, the Delhi-based low-cost airline, has stopped operations until further notice after running up heavy losses in recent months.
The airline, which is owned by Gopal Goyal, who recently became a minister in the Haryana government, has hired Star Air — an aviation industry consultancy firm — to work out a revival plan. With the help of Star Air, which is run by aviation industry veteran Harshvardhan, MDLR is hoping to get back into the air in another three or four weeks with a new flight plan that will take it to profitability or at least help it to trim its losses.
Several of the airline’s top managers, including the chief executive officer Koustav Dhar, have resigned in the wake of the shutdown over a month ago.
MDLR attempted to build a niche as a regional airline and it was flying to destinations such as Kullu, Chandigarh and Ranchi from Delhi. The airline advertised itself as the “world’s first vegetarian airline” when it commenced operations. The airline has three Avro RJ70 70-seater aircraft that are on lease. One advantage for MDLR is that it still has the necessary government approvals to get back into the skies.
MDLR (the expansion stands for Murli Dhar Lakh Ram) is a Haryana-based group with extensive interests in real estate.
07/12/09 Paran Balakrishnan/The Telegraph

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Categories: MDLR Dec 2009