Pies in the sky

In both cities, this is the terminal reserved for private carriers. And in the next few months, their numbers are going to swell. This year, at least half a dozen airlines are lining up for take off, some as early as the summer.

Most of them are low-cost ventures with a lean fleet, minimum manpower and a host of new route plans. Almost all of them will fly to at least one of India’s two biggest cities. Hence the frenzy to expand facilities at the Delhi and Mumbai airports.

Actually, by the end of 2005, aviation experts believe the Indian skyscape would have opened up enough to challenge existing infrastructure at all major airports. Passengers will have several options in terms of fares and discounts, as air travel begins to truly reach middle India.

THE success of Jet Airways as a premier airline and the growing popularity of Air Deccan as a low-cost carrier seems to have had a cascading effect. With Jet (and Sahara) now beginning to focus on international operations, there appears to be more elbow space for smaller carriers within India.

With a few small aircraft and a couple of Airbus A320s, Air Deccan’s ability to cut expenses by relying on Internet-based booking rather than agents is an idea that seems to have had a healthy resonance. Moreover, the government has waived landing charges and cut air navigation expenses for sub 80-seater aircraft.

The changed policy environment and the smell of opportunity has brought in a range of players. With a handful of Embraer jets or Airbus ATRs, an operator can function as a commercial airline.

NOT everybody is thinking small, and certainly not Vijay Mallya, MP, liquor tycoon and wannabe airline baron. With economy class fares about 20 per cent lower than Jet and Air Sahara, Mallya’s Kingfisher Air aims to compete with the best in business. According to Alex Wilcox, its chief operating officer, Kingfisher will provide ‘‘the best in-flight services as well as more competitive fares’’.

The airline plans to induct about 20 aircraft over the next three years. It starts this summer with a more modest fleet of Airbus A-320s and is looking to eat into into Jet’s and Sahara’s market share of corporate and well-heeled travellers.

‘‘We will be a proper airline,’’ says Wilcox, perhaps to dispel any ‘‘no-frills notions’’, ‘‘our in-flight services will be very good and we will have the best seats in our aircraft.’’ Mallya’s airline — capital base: Rs 200 crore — is likely to inaugurate operations with a Mumbai-Bangalore flight in May. By December, with 10 aircraft, it should have a pan-Indian route map.

NEXT in line is SpiceJet, which is true to Indian tradition in that it is a case of reincarnation! This no-frills, low-cost carrier traces its origins to Modiluft, among the first private airlines in the 1990s. The airline folded up after Lufthansa withdrew from the JV, following financial trouble.

Subsequently, the Modis sold it to the London-based Malwood Group, run by the Kansagras, an NRI business family that has interests in east Africa and in hotels in the United Kingdom.

SpiceJet is being brought to India by Royal Airways, the Kansagra-run holding company. Its promoters have raised over Rs 100 crore.

Nures Sayeed, spokesperson for Royal Airways, says SpiceJet will eventually go national, though the inital focus is likely to be on the north and west. Despite Air Deccan’s first mover advantage in the low-end market, SpiceJet says it will provide better in-flight services.

It promises 20 new generation Boeing 737s. But for starters, it will be three aircraft by mid-May.

ALSO planning to begin flights in May is Air One, a low-key entity set up by former Indian Airlines pilots. The airline benefits from the government policy exempting 80-seater and smaller aircraft from landing charges. With two Embraer jets confirmed, Air One is starting cautiously.

Airline head J.W. Lobo believes in keeping it simple, but focusing on the few routes he has identified. Air One has permission to operate out of Bangalore, so it hopes to fly the Chennai-Bangalore-Pune sector. The second route on the cards is Thiruvananthapuram-Delhi-Bhubaneshwar.

‘‘Our aircraft are capable of flying cross-country and we hope to take advantage of this,’’ says Lobo, pointing out Air One will be a no-frills affair, but not quite as austere as Air Deccan. ‘‘We will provide some complimentary service, like a snack and a cold drink.’’

The airline — bankrolled by Gulf-based NRIs, including the Albertsons Group — aims at low-density regional routes, where it estimates there is low connectivity despite market potential.

THE link may be a mystery, but more than one alcohol maker is diversifying into civil aviation. Promoted by Kapil Mohan of Mohan Meakins, Indus Air is set to be in the air by September. Right now Mohan and his fellow investors are looking at buying aircraft, beginning with two Embraers (RJ 145s).

The carrier’s catchment area is north India, with Delhi and possibly Amritsar as its hubs. It plans to bring Jammu, Srinagar and Chandigarh onto its map, while hoping to expand east to Kolkata in the next phase, when it gets five more Embraers.

Like Air One, the airline wants to keep flight capacity under 80, so as to avail the tax exemption. ‘‘This will be a low cost operation with minimum services,’’ says S. Mohan, spokesperson for Indus Air, adding fares will be competitive compared to those offered by other budget airlines.

SCION of the Bombay Dyeing family, Jeh Wadia plans to have Go Air cruising the skies by September. While he has visions of taking the airline national, the early days will be spent consolidating the western region.

‘‘We plan to have 15 aircraft,’’ says Wadia, ‘‘but there will be three by this year. Though we will be low-cost, we will not completely cut down on frills.’’

For the moment, Go Air is playing taciturn, busying itself in obtaining requisite permission from various authorities for parking bays and other facilities. It is learnt, however, that Go Air may be looking at Pune as operational HQ, given the rush for slots in Mumbai, particularly with Kingfisher also planning to start operations.

BARGING into the party is a new public sector airline called Air India Express. With fares pegged at 25-30 per cent lower than existing ones, Air India Express — carved out of the mother company — plans a low-cost capture of the huge traffic between Kerala and the Gulf. In short, it is the Maharaja’s answer to the likes of Etihad Airways.

With a fleet of over 30 Boeing 737-800 aircraft, the airline leaves the hangar on April 29. Though it was to be headquartered in Thiruvananthapuram, it has been decided to keep Delhi as the base, because the airline will look to expand operations to north India in the next phase.

Low on luxury, the airline will not cut down on basic in-flight services. If officials are to be believed, A-I Express will only move up the value chain in the days ahead.

THE list above is hardly definitive. Like in the case of any sunrise sector, there’s a buzz of activity around the airline business, with new companies being announced almost by the day. Yamuna Air, Visa Air and Magicair — promoted by Nira Radia, who also runs public relations firm Vaishnavi Communications — have applied for clearances from the Ministry of Civil Aviation.

In the early 1990s, the first round of private airlines and air operators left India a mixed legacy. If Jet survived and prospered, Modilift, Damania and East-West simply flew into oblivion.

Inevitably, the current boom will also see its failures and its fly-by-night operators. Yet some of those getting onto the tarmac have deep pockets and serious ambitions. In the end, they’ll be flying more Indians to more destinations than ever before.