The Hindu Business Line : Air Dravida bets on Bombardier

Chennai, April 19 Air Dravida is the new kid on the block in Indian aviation. The airline intends to start operations in South India some time towards July-end.

The airline’s business model is pretty much the same as Paramount Airways, the other carrier that currently focuses on South India. Both companies, incidentally, have promoters from Madurai.

Like Paramount, Air Dravida will be a fully-priced, full-service airline. Another similarity — Air Dravida will also press into service jet aircraft, only they will be Bombardiers, unlike Paramount’s Embraers.

Mr Ramchandran Iyer, Executive Director, Air Dravida, believes that Bombardiers are the best for flying short hauls. At a press conference here, he said the Canadian jets are the most cost effective for short hauls. Bombardiers are more fuel efficient than Embraers.

Air Dravida starts with a capital of Rs 110 crore. The promoters, headed by Mr Sheik Dawood of Madurai, have put in Rs 40 crore.

Air Dravida is seeking private equity capital for most of the rest. Mr Iyer said that of the other Rs 70 crore, only 30 per cent would be debt — the rest would be raised through private equity.

Mr Iyer said the airline would invest use ticket selling agents while also selling tickets online. It would also open a division for in-flight catering service. This division would offer its services for other airlines also, he said.