• Growth blips in regional connectivity radar

    Come July, there will be yet another regional airline opening shop in the country. Air Carnival will not be a player connecting big cities with each other, but one that tries to make inroads into less connected and unconnected air routes.

    Air Carnival is only the latest entrant into the regional aviation sector. There are already players like Air Pegasus, TruJet and others that seek to tap into the short haul segment. The new National Civil Aviation Policy (NCAP), with its unarguable emphasis on regional connectivity and affordability might well foster an environment where flying becomes mainstream for thousands of the unconnected.

    “The regional connectivity scheme (RCS) under NCAP will connect India’s remote unconnected regions, boost tourism, create jobs and stimulate the economy in Tier 2-3 cities,” observed Amber Dubey, Partner, KPMG India and an Aerospace and Defence expert.

    Shyson Thomas, Managing Director, Air Pegasus says there is immense potential for anyone gutsy enough to enter the segment. “While mid-segment and large players with larger aircraft cannot get sufficient passenger load to realise profits, those with smaller aircraft of 60 to 70 seats can easily do so,” he said.

    Air Carnival is entering the Madurai to Chennai sector with an ATF 72 – 500, seating 70. According to sources, the route already sees 86 per cent occupancy. “We have sufficient load factors on most routes we ply. and there is space for competition,” stated Thomas.

    Pegasus is also planning to invest in seven or eight more aircraft and is also increasing routes it covers to 24. Joshua Garnett Womens Jersey

    Share This