Star Aviation plans to lay off most staff

Mumbai: Star Aviation Pvt. Ltd, an aspiring regional carrier promoted by Dubai-based Emirates Trading Agency, or ETA Star Group, is planning to retrench most of its employees amid speculation over talks with several firms for a possible sell-off and even closure of the company.
In an interview with Mint on Saturday, T.V. Dorairaj, chief executive at Star Aviation, confirmed that his airline will lay off a majority of its staff and may start hiring again when the airline is ready for a commercial launch.
“Originally, we were planning to drop the idea of starting commercial operations. But now we plan to start services by the end of May or early June. We have signed agreements of getting planes for operations,” Dorairaj said. “We may start rehiring (the staff) when we are ready.”
Star Aviation, which employs 140, got its licence to be India’s first regional airline in 2007. MDLR Airlines Pvt. Ltd, the only other operating carrier with a similar licence, suspended operations on 1 October.
Anyone buying Star wouldn’t be getting much by way of assets, said a senior executive of an airline, who had conducted due diligence on Star Aviation for a possible acquisition. “Star Aviation has been on the block for some time now,” he said. “But the airline has no major assets, including aircraft.”
Though Dorairaj said its planes are ready, Star Aviation has not taken delivery of any planes from Empresa Brasileira de Aeronáutica SA, or Embraer. Dorairaj denied that his airline is in talks with any company for a sell-off. He said the airline has secured an extension of the initial no-objection certificate to operate as a regional carrier up to June.According to the ministry of civil aviation website, the extension is valid up to 2 June.
22/02/10 P.R. Sanjai/Live Mint

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Categories: Regional Airlines Feb 2010, Star Aviation Feb 2010