India is set to have more budget airlines, with two groups planning to enter the fledgling market.
Brewing giant UB Group is seeking to launch a budget airline in India early next year named after its top-selling beer Kingfisher, while another local conglomerate, Wadia Group, is also looking to launch a low-cost airline.
UB chairman Vijay Mallya says the group has been looking for opportunities to leverage the Kingfisher brand and chose the aviation sector because it feels the market is ripe for a low-cost airline entrant. Like Air Deccan, which launched Indian no-frills services last year, it plans to operate A320s.
"There is a space there...the competition in India is almost entirely full-service airlines," says Mallya.
UB Group chief financial officer Ravi Nedungadi is helping with the airline plans along with vice-chairman SR Gupte, a former chairman of Air India. Nedungadi says UB Group is investing Rs1.5 billion ($33 million) in the airline and wants to use a small charter airline it owns, called UB Air. Negotiations have already begun for the lease of eight second-hand A320s, which will be delivered from early next year, says Nedungadi. Four of the eight A320s will be based in Mumbai and the rest in Delhi.
Wadia Group says it plans to launch "within six months" and has already sought approvals from India's Directorate General of Civil Aviation. Wadia used to own a small air charter company in India called Megapode Airlines. Wadia's major businesses are in the textile, chemical, plantation, foodstuffs, laminates, electronics, health care and education sectors.
LEITHEN FRANCIS / SINGAPORE
Source: Flight International
