Supertech ventures into aviation sector

Currently, the real estate firm has started Air Charter services after receiving a Non-Scheduled Operator Permit from DGCA

Real estate firm Supertech is readying plans for a scheduled commercial airline in the next couple of years unfazed by turmoil in the sector.

It had started an air charter service after receiving a non-scheduled operator permit (NSOP) from the aviation regulator, the Directorate General of Civil Aviation (DGCA), Supertech Chairman and Managing Director R K Arora told Business Standard.

“We are offering chartering services for the last four months. We have one chartered plane and will add more soon. An investment of Rs 50 crore has gone into this new segment till now,” he said.

The Noida-based realty firm is waiting for amendments in existing policies before applying for a permit for a full airline, for which it needs a scheduled operator licence from the DGCA. “There is a big demand in the aviation space, especially in Tier-I and Tier-II cities. And with the government’s plan to set up airports in smaller cities, the demand is only set to increase in the coming times,” Arora said.

Supertech’s planned entry into the business comes at a time when many airline companies are in trouble. With dues to vendors of over Rs 1,200 crore, SpiceJet, for instance, has decided to cut 1,860 flights in December and trim its fleet to reduce losses. Many are predicting it might go the Kingfisher Airlines way.

At the same time, new players are entering the field. Vistara, a joint venture between the Tatas and Singapore International Airlines, is expected to launch as a full-service carrier from January. Pegasus Air is also expected to launch services next year on regional routes in south India with 70-seater ATRs. Flyeasy and Premier Airways are likely to join the party by next year. Air One. promoted by a former employee of Air Sahara, is also expected to fly in the next eight months. The DGCA has given permission to six companies to run scheduled airlines.

Supertech’s main business is real estate, under which it is constructing 70 million sq ft. The company has residential and commercial projects in Gurgaon, Noida, Greater Noida, Meerut, Rudrapur, Dehradun, Haridwar, Ghaziabad and Bengaluru. It also recently forayed into education business by setting up a university in Uttrakhand.