Chennai: The Kingfisher Airlines' crisis has hit start-up regional carriers. Companies with licenses to start services are finding it difficult to rent planes as lessors are being cautious after their bad experiences with Kingfisher and Paramount Airways.
Most agencies that lease planes to airlines are based in the UK and US. These agencies do not have confidence in the aviation sector in India, and are refusing to lease planes to start-up aviation companies. Some have demanded an advance payment of rent for two years instead of the conventional three months. This has not only increased costs but also delayed the plans of regional carriers to start services.
To improve air connectivity between tier II cities, the Directorate General of Civil Aviation has given approval to Air Costa, Air Pegasus, Volk Air, Deccan Shuttle, Karina Airlines and Religare Voyages as regional airlines.
05/11/12 V Ayyappan/Times of India
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Most agencies that lease planes to airlines are based in the UK and US. These agencies do not have confidence in the aviation sector in India, and are refusing to lease planes to start-up aviation companies. Some have demanded an advance payment of rent for two years instead of the conventional three months. This has not only increased costs but also delayed the plans of regional carriers to start services.
To improve air connectivity between tier II cities, the Directorate General of Civil Aviation has given approval to Air Costa, Air Pegasus, Volk Air, Deccan Shuttle, Karina Airlines and Religare Voyages as regional airlines.
05/11/12 V Ayyappan/Times of India
