New airlines take off in Gujarat

Two new regional airlines are likely to start operating within Gujarat in the next few months. One of them is Luan Airways, a full-service carrier, to be based in Surat. The reason for choosing Gujarat as its base, the website of the carrier says: "The trade potential and per capita income of Gujaratis rank among the highest in India. By nature, they are large spenders and frequent travellers both for business and leisure. In pilgrimage tourism, too, Gujaratis are the foremost travelling community." The rates are expected to be on par with full-service carriers.
The promoter of the airline is Binod Chhawchharia, an Assam-based entrepreneur, with interests in real estate, contracting and manufacturing industry.
An analyst said: "If the spread was larger, such as two-three states, it would have made sense. Within Gujarat, if a train can take me to my destination within four-five hours in more or less the same time and at a price three-four times lesser, people would opt for it. Air routes may be used by VIPs such as ministers and high net worth individuals, but not by regular businessmen."
Analysts say being a regional airline has nothing to do with the business not taking off.
18/08/10 Sneha Kupekar/Business Standard/Sify

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Categories: Indian Aviation- In General Aug 2010, New Aug 2010