Wednesday, September 12, 2018

Cost-cutting: Intrastate flight biz changes hands

Gujarat continues to be jinxed for companies keen on operating intrastate airlines. After starting operations in February this year, Air Odisha has decided to give away its Gujarat operations to Air Deccan in exchange for another sector as part of cost cutting.
Early this year, Air Odisha had won bids for flying on 128 routes connecting 70 airports under UDAN (Ude Desh Ka Aam Nagrik) scheme.
It launched the first intrastate flight in the state in the last week of February from Ahmedabad to Mundra and later on to Diu, Jamnagar, Surat via Bhavnagar. Now Air Deccan will operate on the same routes.
Talking about the change Accountable Officer of Air Odisha, Santosh Pani, said, “We gave away our operation to Air Deccan as it would be more cost effective for both of us.”
Air Deccan was awarded intra state operation in Maharastra and they have also been operating in Gujarat for 20 days now. Anantha Raman, business development officer of Air Deccan, said, “There is potential to grow in Gujarat. This development will help us cut down costs by getting night parking in Ahmedabad for both our aircraft which we were not getting previously.”
12/09/18 Alok Brahmbhatt/Ahmedabad Mirror