MDLR group floats airline, to start operations in April

Come April, India will have one more full service airline in the Indian skies. Gurgaon-based realty firm MDLR group is floating an airline company, MDLR Airlines, which will operate as a regional carrier.

"The commercial launch of MDLR Airlines is expected by the first week of April. We will be flying the BAe AVRO RJ-70, which is a four engine jet with 70 seats. This will be the only airline to serve purely vegetarian food on board," Koustav M Dhar, president (commercial & special projects) MDLR Airlines, said.

Currently, there are only two carriers operating regional services "" Jagson Airlines and Indus Airways. Full service carriers "" Indian Airlines, Jet Airways, Air Sahara, Kingfisher Airlines and Paramount Airways "" are currently losing market share to low fare carriers such as Air Deccan, SpiceJet, GoAir and IndiGo. The market share of budget carriers was at 34 per cent in January.

Sources said the model of MDLR Airlines is similar to Chennai-based Paramount Airways with business class and first class configuration.

"Paramount Airways primarily operate in the south Indian market, while MDLR Airlines in the northern side. Both airlines have lots of similar features," industry analysts pointed out.

MDLR Airlines will have 6 business class seats and 64 economy seats. The economy fare will start from Rs 1000 and there will four different buckets for Club fares (business class). The airline will start regional operations from cities such as Chandigarh, Delhi, Ranchi and Kolkata. It has also plans to enter western India by connecting Surat, Bhavnagar, Mumbai and Goa.

"Initially, we will be having two BAe AVRO RJ jets and later we will increase it to five. In the meantime, we are talking to aircraft manufacturers such as Bombardier, Embraer and ATR for acquiring more jets," Dhar said. The company wants to have 35-40 aircraft in its fleet by 2010, he added.

Airline executives added that BAe jets are suitable for short landing in the airports of north India which are having short runways.

Asked about the intense competition in the Indian aviation scene, Dhar said there is potential market in tier-II cities as airline companies do not stick to regional operations. "Our idea is to stick to regional operations," Dhar added.

MDLR group, the promoter of the airline, has its business interests in commercial and residential real estate development including shopping malls, residential colonies and group housing projects, farmland development, resorts, restaurants and airlines.