The newest addition to the Indian aviation landscape, the Bengaluru-based regional startup airline Air Pegasus which has been operating its aircraft for eight months now, will add three more aircraft to its existing two by March-end. As of today, it has two aircraft flying to seven cities in the south and it will add sectors as it takes delivery of more aircraft.
The airli ne company, which has so far seen Rs 100 crore of fund infusion from debt and equity (with $15 million from Decor Aviation and $5 million from Canara Bank), is also looking at more revenue streams. The airline, started by Bengaluru-based Decor Aviation, the largest ground-handling service provider in South India, is looking at courier and e-commerce firms to help add to its revenue. Each flight can take 500 kg to 1,000 kg cargo.
Meanwhile, it is also firming up plans to tie up with courier companies to fly their cargo. With this, the airline would be looking at another revenue stream.
The airline, which claims that it doesn’t follow the low-cost model, but a ‘right-cost’ model, said that it’s enroute to breaking-even in a couple of months. Perhaps the success of its model can be judged by the fact that the lessors have been reducing the amount of deposit the company has to pay for taking delivery of the aircraft. The airline said that with its ability to ensure cash flow, the lessors have also been reducing the amount of deposit that they have been demanding from the company.
21/12/15 Praveen Bose/The New Indian Express
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The airli ne company, which has so far seen Rs 100 crore of fund infusion from debt and equity (with $15 million from Decor Aviation and $5 million from Canara Bank), is also looking at more revenue streams. The airline, started by Bengaluru-based Decor Aviation, the largest ground-handling service provider in South India, is looking at courier and e-commerce firms to help add to its revenue. Each flight can take 500 kg to 1,000 kg cargo.
Meanwhile, it is also firming up plans to tie up with courier companies to fly their cargo. With this, the airline would be looking at another revenue stream.
The airline, which claims that it doesn’t follow the low-cost model, but a ‘right-cost’ model, said that it’s enroute to breaking-even in a couple of months. Perhaps the success of its model can be judged by the fact that the lessors have been reducing the amount of deposit the company has to pay for taking delivery of the aircraft. The airline said that with its ability to ensure cash flow, the lessors have also been reducing the amount of deposit that they have been demanding from the company.
21/12/15 Praveen Bose/The New Indian Express