Mumbai: Captain GR Gopinath , the man who made flying cheaper through his low-cost airline Air Deccan and later sold it to Vijay Mallya-owned Kingfisher Airlines , will return to the aviation business by launching a regional airline.
The promoter of India's first low-cost carrier is in talks with international vendors to develop software for a scheduled airline (an airline that operates services according to a time-table), said a person, who has direct knowledge of the deal without disclosing the names of vendors. Gopinath plans to first target the growing regional market and connect metros through a national carrier.
"I want to start a regional airline and then also expand it to the trunk national routes, but this will take awhile," said Gopinath. "I need another 10 years of energy and also cash flow is an issue."
But his entry into the aviation business is likely to transpire towards the end of 2012 when his five-year non-compete clause, signed at the time of selling stake to Mallya, ends. Till such time, he will follow the strategy of simultaneously developing the groundwork for the airline and strengthening non-schedule operations which received no-objection certificate from the government, according to three senior aviation industry officials.
The 54-year-old former captain from Indian Army may find it tough to raise cash for his new venture as bankers are not very keen on lending money to the booming aviation business due to its volatile nature. Air Deccan was sold to Mallya in 2007 after suffering huge losses.
08/03/11 Manisha Singhal/Economic Times
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment