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New Delhi, Feb 5 : Domestic air travel boom in the country now has the government indulging in promotion of regional air connectivity, Air Sahara and public sector carrier Indian Airlines (IA) are already gearing up to make the most of it. Air Sahara is planning to purchase 25 regional jets while IA has decided to take 6 regional jets on lease to augment is smaller sector connectivity.
Air Sahara president Alok Sharma said the airline is already in talks with Bombardier for their 75-seater aircraft, but will also look at other options from Embraer. "If the government brings down the sales tax on ATF for regional jets to 4%, then flying tier-II cities to the metros will easily become more profitable than operating metro to metro routes,” he said.
Considering the list price of a Bombardier 75-seater to be $35 million, the purchase will cost the company $875 million. When asked about raising funds for the purchase of the jets, Sharma said, “we are happy with promoter backed funding activity.” At present Air Sahara has 7 Bombardier CRJ planes on lease, but are planning to replace them as early as possible.
Indian Airlines is looking at Bombardier CRJ700 regional aircraft and also Embraer ERJ family of 70-seater aircraft. The tenders are likely to be invited within this month only and the operations are will be started by either April or May, highly placed company officials said.
