Starting Problems

Amidst turbulence in regional skies, a fifth player, Air Carnival, has entered the regional airspace and yet another full service commuter airline Zoom Air is all set to take off. There are lessons to be learnt from the regional airline hiccups.

- R. Chandrakanth

EVEN WHILE THE GOVERNMENT is busy creating an ecosystem for regional connectivity, two of the four regional players are already floundering. Air Costa had suspended operations after issues with lessors, while Air Pegasus had lessors repossess their aircraft. Both the regional operators, however, got back on the runway, albeit for now. The government which is keen on boosting regional connectivity did offer to help the airlines, if they sought help. The Civil Aviation Minister, P. Ashok Gajapathi Raju, had stated that the government could do some ‘light handholding’.

The case of Bengaluru-based Air Pegasus is quite serious as lessors had approached the Directorate General of Civil Aviation (DGCA) asking it to deregister the three planes it had loaned to Air Pegasus. The rules are a little complicated here and lessors are not too excited about it, though the Civil Aviation Secretary, R.N. Choubey has said that it was necessary to de-risk leasing as to attract more lessors to get into the market. While that would be good for the leasing community, the start-ups need to get their business model right as to not lose money and subsequently the aircraft.

AIR CARNIVAL STARTS OPERATIONS

Amidst all this turbulence, a fifth player, Air Carnival, entered the regional airspace on July 18 this year from Coimbatore, starting operations with one ATR aircraft. And another full service commuter airline Zoom Air has announced that it would be soon flying on regional routes, deploying Bombardier’s CRJ. New start-ups entering the fray is welcome, but then the woes, financial mostly (besides safety as was noticed with Air Pegasus and which got pulled up by the DGCA, seem to loom large and there are lessons to be learnt from these players.