The country will soon see the launch of its first 19-seater private airline. Surya Airlines, promoted by Kerala-based Universal Empire group, will start operations from mid-October, 2006.
Malayalis-led private airline will take off in October.
KOLKATA: The country will soon see the launch of its first 19-seater private airline. Surya Airlines, promoted by Kerala-based Universal Empire group, will start operations from mid-October, 2006.
Singapore-based investment company Suntech Corp has picked up a 49% stake in Surya Airlines, while the privately-promoted Buddha Airlines of Nepal has inked a tech collaboration deal for the project with Universal Empire.
The total investment in the new carrier will be Rs 350 crore. Universal Empire, which floated Surya Airlines about six months back, will invest Rs 100 crore, while Suntech will bring to the table another Rs 100 crore. About Rs 150 crore will be the debt component, for which Universal Empire is in talks with IL&FS and Hudco.
The group is also in talks with Raytheon, which has core competency in manufacturing 19-seater aircraft.
Plans are on the anvil to purchase 10 aircraft, the cost of each being $50 million. Universal Empire will take the aircraft from Raytheon on lease purchase, with 5-6% interest.
Surya Airlines will connect Guwahati with almost all the cities in the north-east barring Sikkim and Arunachal Pradesh as the respective capitals of the two states — Gangtok and Itanagar — do not have airports. However, Lilabari’s airport in Assam, situated close to Itanagar, will help serve Arunachal as well.
“We have chosen the north-east for launching the operations for two reasons. First, over the next 10-15 years, the action will shift to the east and north-east of the country with a thrust on wooing investors from South East Asia.
Secondly, connectivity is poor in the north-east and there is good scope for the aviation business,” K Balachandran Nair, chairman and managing director, Universal Empire Group, told DNA Money.
Universal Empire is also vetting a proposal from the Uttaranchal government for starting 19-seater aircraft operations. “We want to make Surya Airlines a pan-Indian carrier once we are successful in the north-east,” said Balachandran Nair.
Surya Airlines will be a full-fare service.
“Our fares will be as good as that of a low-cost carrier,” said Balachandran Nair.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}