Star Aviation gets nod to operate regional flights

14 December, 2007:

Star Aviation is all set to be the first regional airline in India. According to aviation industry reports, the Ministry of Civil Aviation has given a no objection certificate to Star Aviation to operate regional services. Earlier, in a bid to promote air-connectivity in smaller cities, the government had announced a policy on regional airlines in August 2007. The norm said that a regional airline can be started with a paid up capital of Rs 12 crore and one aircraft.

Star Aviation is owned by a Dubai-based NRI Syed Mohammad, who owns a $3.8-billion business empire, including a leasing company that has leased aircraft to Air India. The airline company is said to have charted out plans to launch its operations in March 2008 with ATRs.

As Star Aviation gears up to be the pioneer in this space, the ministry also shot down the applications filed by Trans India Aviation and Air Dravida to operate regional airlines, the reports said. It has also been pointed out that the Ministry is yet to take a decision on the application submitted by the Gurgaon-based MDLR Airline.

The Ministry is believed to have said no to Trans India and Air Dravida as the business plans they had submitted simply did not look viable. The Ministry has asked these two players to come back with revised profitability analysis and business plans. The two disappointed players had earlier lined up plans to operate services over the South Indian skies. The two companies wanted to operate in South India, said a report, as the policy on regional airlines allows carriers in the South to operate to all the three big cities of Chennai, Bangalore, and Hyderabad.

Meanwhile, a related report said that the airlines that will be allowed to operate in regions other than the South will have to stick to just one metro. This would in turn mean that an airline operating in the North can fly only to Delhi, while one flying in the West would operate only to Mumbai.