Subsidy scheme to woo airlines

Puducherry:  Hyderabad-based TruJet and Bengaluru-centered Air Pegasus are reported to be strongly bidding for operating flight services through Puducherry.

The Puducherry Government had launched a rejigged subsidy scheme to woo airline operators after Air India's budget arm, Alliance Air, abruptly suspended its flights to Bengaluru after six months of operations, following a dispute over payments under the Viability Gap Funding scheme.
"We're processing the proposals submitted by the operators and are negotiating with them over some changes in their offers," Chief Secretary Manoj Parida said.

What the Government is anxious about is entering into any sort of arrangement where an assured subsidy turns out to be a disincentive to the operator for aggressively pushing for ticket sales.

The Government is offering a subsidy of Rs. 2,500 per unsold seat with an annual cap of about Rs. 2 crore.

Sources say that one of the core aspects of a new deal would involve charting out a viable circuit that is attuned to tourist demand. Given the domestic tourist trends, a triangular circuit that involves Puducherry, Chennai and Bengaluru, is what the Government is looking at.
29/12/15 M. Dinesh Varma/S. Prasad/The Hindu

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2015 was a mixed bag for airlines in India

The civil aviation policy could soon see the light of day, but all eyes would be on how it would deal with the demand for scrapping the controversial 5/20 Rule that makes a domestic airline to complete five years of operations, while having a fleet of as few as 20 aircraft to start international operations.

While there is the promise of a business-friendly policy in early 2016 with tax sops, fliers will have to spend more on tickets due to the introduction of a 2 per cent cess to fund the government’s regional connectivity plans. SpiceJet, which was on the verge of closure due to financial problems last year, sprang back to business with the entry of its original promoter Ajay Singh, while Vistara, a joint venture of the Tatas and Singapore Airlines, took to the skies in January this year.

Air Pegasus and Trujet also started services this year. Another positive for the sector was the entry of IndiGo in the Bombay Stock Exchange, the first for an airline in last nine years. The airline, which firmed up its order for 250 ‘A320neo’ aircraft of Airbus, raised over Rs 3,000 crore from the capital market.

Air India also did not make much negative news this year as it was slowly picking up pace on its turnaround plan with a new man, Ashwani Lohani, at its helm. Jet Airways, which also placed an order with Boeing for 75 fuel-efficient 737 Max single-aisle aircraft, subsumed its low-cost arm Jetlite into the main brand.
25/12/15 Shemin Joy/Deccan Herald

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Air Pegasus Announces New Year Sale

Regional low-cost carrier Air Pegasus has announced special offer of tickets priced at Rs1,999 for those flying into Bengaluru from its other served cities and towns in the southern states to mark Christmas and New Year.

"We are adding colour to the festive fervour of Christmas through this offer and ensure that our passengers start New Year on a cheerful note," Air Pegasus managing director Shyson Thomas said in a statement here.
25/12/15 Indo-Asian News Service/NDTV

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Air Pegasus Growing Steadily to Widen Reach

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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Air Pegasus eyes startup companies as customers

MUMBAI: Bengaluru-based newbie airline Air Pegasus has launched offers for startup companies, in a bid to tap into the corporate travel segment.

The offers include cheaper "flights, accommodations, cab facility, special assistance at the airport, priority check-in process, special meal on board etc" the airline said in a statement.

The airline has provided a section in the website, where the start-up companies can submit their requirement, subsequent to which the sales team will take the process forward. The smartup deal will be independent of price variation in the market which means factors like festive season, peak season wouldn't have any impact on an already fixed deal.
14/12/15 Anirban Chowdhury/The Economic Times

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Air Pegasus offers tickets at lower fares in Grand Thursday sale

Bengaluru:  Air Pegasus today said it will launch a Grand Thursday sale for all passengers travelling in this last month of the calendar year.

The booking, with options of single fare, couple and family fare, will open tonight (December 3) at 11:00 pm and it will be available till Saturday night for all sectors covered by the airline.

Single fare for individuals is available for just ?2,015 while a couple fare for two persons on a single ticket will get a discount of ?500 on a round trip. A family of our will get a discount of ?1,000 on a round trip.
03/12/15 Business Line

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