Mysuru-based medical devices manufacturer Skanray Technologies is planning an entry into the aviation sector, targeting smaller towns to tap the government’s push for regional air connectivity and rising middle-class travel demand. The company has partnered with Air Deccan founder G R Gopinath to launch a new airline venture, Skanjet Aviation.
“For the past five years, we have been engaging with aircraft manufacturers, operators, investors and aggregators to study the sector and assess its viability. We believe the timing is now right,” Vishwaprasad Alva, managing director of Skanray Technologies, told FE.
Skanray has submitted applications to the civil aviation authorities and other regulators and expects approvals shortly. “Our plan is to start operations from April,” Alva said.
Regional Strategy
Skanjet Aviation proposes to begin operations from Mysuru, with Amaravati in Andhra Pradesh planned as a connectivity hub for both domestic and international routes. Alva said he and Gopinath have been in discussions with state and central governments over the past five years, adding that policy conditions are now more favourable, without elaborating.
“The government also wants to break the duopoly in the aviation space, so we feel this is an appropriate time to enter,” he said. The move comes amid renewed scrutiny of market concentration in Indian aviation following recent disruptions at IndiGo, whose large-scale flight cancellations last week stranded thousands of passengers. IndiGo currently commands about 64% of the domestic market.
“IndiGo is presently operating flights from Mysuru, but services have been uncertain and unreliable. During the recent crisis, Mysuru was completely cut off when flights were suspended,” Alva wrote in Skanjet’s proposal to civil aviation minister Ram Mohan Naidu, reviewed by FE.
The airline plans to start with three ATR 72 aircraft, connecting Mysuru with Hyderabad, Goa, Mangaluru, Kochi, Chennai, Tirupati and Mumbai. The fleet is expected to double to six aircraft within a year. “We will need around ₹150–200 crore to begin operations with three aircraft, as they will be leased,” Alva said.
He added that the company is in discussions with Aircraft manufacturers and leasing firms to finalise terms. Funding will be raised through a mix of small equity and debt. “We are not people with deep pockets. Capital will largely come from close contacts and high-net-worth individuals who are willing to back the venture,” he said.
However, Alva said the company has sought assurances of fair treatment from both the Centre and state governments in the initial phase. “If policy remains consistent, aviation can break even in two years,” he said.
Diversification Amidst Financial Pressure
The aviation foray comes at a time when Skanray’s core medical devices business is under pressure. Founded in 2008, the company is yet to break even despite being a leading domestic manufacturer with over 800 employees and eight manufacturing facilities in Mysuru and Bologna, Italy. Its product portfolio includes patient monitoring systems, X-ray equipment, electro-surgical units, anaesthesia workstations and ventilators.
Skanray reported revenue of ₹248.7 crore and an operating margin of -10.3% in FY24, compared with ₹251.1 crore and -5.8% in FY23. Revenue declined 25.2% year-on-year to ₹139.5 crore in the first nine months of FY25 due to subdued demand for some products. “Although a revival in the company’s performance was expected during FY25, it did not materialise,” ratings agency ICRA said in a March 2025 report.