The Hindu Business Line : Aviation sector planning independent body

Captain G.R. Gopinath, Managing Director of Air Deccan, gesturing during the Question and Answer session with the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy (seen in background) at a business session of Indian Travel Congress, the 55th edition of the Travel Agents Association of India convention, held at the HICC centre in Hyderabad on Sunday. — Mohammed Yousuf

Hyderabad , Sept 3

The aviation sector in India is working towards creating an independent body on the lines of Nasscom to address issues concerning various stakeholders.

The Managing Director of Air Deccan, Mr G.R. Gopinath, said that such a body would serve as a single-point interface for articulating issues relating to the aviation industry in the country.

"It will cover airlines, both public and private, customers, catering arms and other services providers, including logistics. This will ensure there is better interaction with the independent regulator, set to be in place for the aviation sector soon, towards a level playing filed."

Speaking at the Indian Travel Congress, Mr Gopinath said that the company is in talks with several State Governments - including Chattisgarh, Uttaranchal and Madhya Pradesh - for underwriting of seats, which would ensure that "we link up hitherto unconnected cities. It provides the comfort of entering a new centre and shows Government commitment."

The Indian aviation sector has gone in through a paradigm shift in terms of way people look at air travel. Air travel was looked at something that only rich could afford. This perception has changed, as it has also become a business necessity even for the middle class. Nobody can afford a two-day travel for a business meeting.

Detailing Air Deccan's expansion plans, Mr Gopinath said: "We will soon link more destinations, including a Vizag-Tirupati link and connectivity to Kullu, among other centres."

The company has ordered for 92 planes, 62 of them Airbus and the rest ATRs, and one plane will be inducted to the growing fleet every month, helping connect a new destination.

On the ongoing expansion, he said that low-cost airlines also need low-cost airport terminals. Unless this happens, passengers will lose out. The company has initiated talks with GMR for the Hyderabad and Delhi airports.

Air Deccan is investing about $12 million in creating a modern aircraft hangar in Chennai, which will be ready by December 2006. Two simulators costing a total of $25 million will be added.

This will be a full-fledged facility across 70,000 sq ft. The company has inducted about a dozen senior professionals from Ryan Air, Jet Blue and Malaysian Airlines.

On company finances and when Air Deccan expects to turn positive financially, Mr Gopinath said that the airline continues to be in expansion mode and is investing significantly in various facilities. "It could take anywhere between two and four quarters."