The Hindu Business Line : ‘We will launch our airline only when it is commercially viable’

The diversified Bird Group, which has interests in ground and airport handling, is going in for further diversification with the recently launched Bird Air Services, a vendor-neutral service for those wanting to import and/ or operate aircraft. The group also has plans for a regional airline. In an interview to Business Line, the Executive Director, Mr Ankur Bhatia discusses the company’s expansion plans.

Excerpts from the interview:

What is the status of the proposed regional airline?

We are convinced that the potential with the right business model is tremendous. Less than 2 per cent of the country flies and, at the right price point and the right routes, this number can be increased five-fold.

While the current uncertainties around fuel prices, airport infrastructure, economic stability and players in the aviation field have made us watch the market a lot more closely, we are in a position to launch in the middle of next year and look to operate between Tier II and Tier III cities that do not have an air connection at present.

There are many cities in north India which are 30-45 minutes flying distance from one another and have a good potential.

We are looking at operating 30-40-seater aircraft. We should have few problems in starting operations, considering that we do ground handling and airport handling for several airlines.

We intend to opt for turbo-props rather than jet-engine aircraft as the fuel efficiencies are greater for short distances. The new start-up will have New Delhi as its technical base and the plan is to start with three aircraft and scale up to five.

Naturally, we will need to have airport infrastructure in place at Delhi as well as the other cities as our business model would not be viable in a scenario of delayed flights. We are very clear that we will only launch our airline when it is commercially viable to do so as a profit-generating business and for no other reason.

What prompted the decision to launch Bird Air Services?

Bird Air Services is vendor-neutral, in the sense that we do not market products of any particular aircraft manufacturing company. But if an individual comes to us and asks us to, we will offer assistance.

We have tied up with French aviation company Regourd, which is globally renowned for sourcing aircraft.

At the moment, the company does not have any aircraft on its books but may take some on in the future. Currently, we have five Indian customers whose aircraft are in various stages of being imported.

Do you see any slowdown in domestic aviation?

Definitely. All the numbers are pointing to it. Our estimate is that demand for travel was down about 6-7 per cent in July as against last year.

This is primarily because of high inflation, volatility of the stock market and rise in air-fares.

Generally, for any family, the first priority is to find money to meet basic needs and only then will they look towards travel.

How are international airfares looking at the moment?

International air-fares are likely to come down during August and September and then again in November as against what they were last year as airlines have committed capacity.