Gamps From United States of America, joined Jul 2003, 469 posts, RR: 1 Posted (10 years 10 months 4 days 14 hours ago) and read 3790 times:
Promoted by retired Indian Airlines officials and plans to operate two 50 seater Embraer initially on lease. To be based at Bangalore.
Source: Press Trust of India
No-frill Air One Feeder Airline to fly from April
Press Trust of India
Bangalore, December 23
Air One Feeder Airline Pvt Ltd, a new 'no-frill' airline promoted by retired Indian Airlines officials, plans to begin operations from April next.
The Bangalore-based firm plans to operate 50-seater jets of Brazilian aircraft manufacturer Embraer on the southern and western sectors, Air One director J W Lobo told PTI on Tuesday.
Air One has received a no-objection certificate from the Ministry of Civil Aviation, he said, adding the airline would not compete with major players on the trunk routes.
Lobo said Ernst & Young has been appointed to attract investors in the firm, which will have an equity base of Rs 4 crore. Air One plans to acquire two aircraft on dry lease from Embraer.
"The promoters will hold 60 per cent equity and the balance will be with investors," he said, adding the firm would raise funds from banks for working capital.
Lobo said Air One would operate initially in southern and western regions during day and plans to shuttle between Kolkata and Bangalore during night to fly patients for the city-based Narayana Hrudayalaya.
He said an MoU was signed a few months ago with the hospital to ferry people from the eastern region, which receives patients from the north-east, besides neighbouring countries.
Gamps From United States of America, joined Jul 2003, 469 posts, RR: 1
Reply 3, posted (10 years 10 months 4 days 7 hours ago) and read 3683 times:
Some more details from Business Standard:
Second no-frills airline by April
Our Bureau in Bangalore
Published : December 24, 2003
AirDeccan, the country’s first no-frills airline, will soon have its first competitor in Airone Feeder Airline Pvt Ltd.
Headed by retired Indian Airlines staff and a businessman in Bangalore, the new airline plans to begin commercial operations by April 2004. The plan has been cleared by the ministry of civil aviation.
“We are in the process of mapping routes. Ernst & Young has shown interest to raise funds for the venture. We have set a deadline of April 2004 to begin operations,” J W Lobo, a promoter of the company, said.
The promoters of Airone will hold over 51 per cent in the airline, while investors will hold the rest. The carrier will raise working capital funds from banks and interested parties.
Airone will dry lease two 50-seater jets from Brazilian aircraft maker Embraer. “Initially, we will need Rs 4 crore for the dry lease of two aircraft. Our major operational cost will be in leasing craft and fuel. We are arranging the working capital for meeting fuel costs. Besides this, we will require some money for the initial operations,” Lobo added.
While AirDeccan has opted for a similar dry lease route, Airone’s advantage will lie in the fact that it would dry lease brand new aircraft, thereby reducing maintenance costs.
“We may incur 10 per cent extra expenditure when it comes to the time taken to cover a certain distance as we will operate a jet plane. Whereas, the hourly consumption of fuel is the same as that of a turbo prop plane,” Lobo explained.
Though the route planing is at the conceptual stage, Airone has decided to operate between the southern and western region.
The carrier has already signed a memorandum of understanding with Narayana Hrudayalaya, a renowned heart hospital in Bangalore, for ferrying patients from the north-east.
Airone is also exploring ways to increase its margins by not going in for traditional ticketing methods.
Though e-ticketing is the obvious alternative, the company is looking at other viable ways also to sell tickets.