Pawan Hans may enter commercial airline business

Yet to decide on business model and timeline

State-run helicopter operator Pawan Hans is planning to enter the commercial airline business, offering regional connectivity, and has received a go-ahead from its board, a top official has said. The The New Delhi-based firm is yet to decide on the business model and timeline for the proposed venture, the official said.

The country's largest helicopter company, which slipped into the red in the 2012 financial year, has managed a turnaround with a Rs 7-8 crore net profit (unaudited) in the past financial year, on account of higher efficiencies and cost-cutting.

"Pawan Hans has a mandate from its board, as well as the government, to go for fixed wing aircraft operations. That is a very challenging opportunity for us," Pawan Hans Chairman Anil Srivastava, who is also a joint secretary in the aviation ministry, told PTI.

Srivastava said plans were in line for the regional connectivity policy, which envisages providing regional air connectivity to support traffic at larger airports. The government is in the process of finalising a policy to promote the regional air connectivity and increase air services in the hinterlands, which is expected to be announced in the next three months. "So, Pawan Hans, in anticipation, intends to play a vital role in the segment. We want to make use of the smaller airstrip lying across the country," Srivastava said.

There are 290-odd airstrips in the country. Of these, some are operational while most of them are unused. Srivastava, however, said a concrete plan for the company's proposed move was being worked out, adding, "Details such as operation model, fleet size/type of aircraft or whether to go in for scheduled or non-scheduled services are to be finalised."

On investment that would be required for entering commercial aviation, Srivastava said: "The first thing is to develop the skills which are required (to run an airline). Financial resources are not critical if the company has the skills to manage the business."