A new airline has been launched in India for the first time in years, with backers calling it the country's first low-cost carrier.

Air Deccan, owned by India's largest charter operator Deccan Aviation, launched scheduled passenger services late in August. It started with two ATR-42s offering twice-daily return services from its Bangalore base to the southern Indian cities of Hubli and Mangalore.

Its plan is to connect smaller towns with metropolitan centres, starting with destinations in the south of the country.

More ATR-42 turboprops are being put into service and the fleet is expected to comprise six aircraft by the end of October, after which Air Deccan plans to fly six aircraft on 70 flights per day.

Air Deccan managing director Capt G R Gopinath says he does not want his to be the biggest airline in the country, but one which is tapping into a niche market. He says some of Air Deccan's destinations are not served by any other Indian airline.

Air Deccan says it has adopted a "lean and mean" approach to staffing levels and "aims at maintaining a low aircraft-to-employee ratio" to keep costs down and ticket prices low. In India only a tiny percentage of the population travels by air, in part, because of high fares.

The new carrier has also "eliminated standard airline frills like onboard catering, business lounges, upper-class seats and other promotional services".

Source: Airline Business