While most full-service carriers have moved out of smaller cities, Delhi-based MDLR Airlines is on track to expand its network in the regional market. The low-fare regional airline plans to add 12 destinations among tier 2 and tier 3 cities in northern India to its network in 2009.
The airline is on way to lease three more Avro Regional Jets (BAe 146 aircraft) to service the expanded network.
Before the winter schedule in 2009, MDLR will be flying to 20 destinations, chief executive officer Koustav M Dhar said. “These are route that are not been used by other airlines and if they do, the timings are not as convenient,” he added.
Newer destinations will include cities such as Amritsar, Leh, Varanasi, Jamshedpur, Raipur, Mangalore and others.
MDLR currently operates three 70-seater, four-engine Avro RJs, connecting eight cities to Delhi.
Talking about the need of dedicated regional connectivity, Mark Martin, senior advisor-aviation, KPMG, said, “MDLR’s value proposition can be very useful in creating and servicing regional demand.”
Many new regional airlines were hoping to start operations last year, however, only three managed to get permits — MDLR Airlines, Jagson Airlines and Star Aviation. Other carriers either shelved their plans or deferred commencement, as jet fuel prices peaked.
Though Indian aviation is currently going through huge financial losses, MDLR is confident of its business proposition. “Besides, flying smaller aircrafts as compared to full-service carriers, our route optimisation plans give us load factors of around 85-87%, which is more than other operators,” Dhar added.
M Thiagarajan, managing director of Paramount Airways, also believes smaller aircraft make better business sense in the current environment of a shrinking air travel market.
“Since I have a smaller aircraft (70-seater Embraer), I am able to adequately fill my aircraft and do more frequency than airlines with bigger aircraft (189-seater Airbus 320 and Boeing 737),” said Thiagarajan.
MDLR had run into payment default issues with lessor British Aerospace Systems, when the company ran into a cash crunch late last year. However, an industry source said the promoters have induced Rs 150 crore to revive the airline.
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