JSW Group to Foray into Avi­a­tion Busi­ness

Sub­mits bid for op­er­at­ing flights on Ben­galuru-Vi­jayana­gar route

The Economic Times - - Companies: Pursuit Of Profit - Mi­hir.Mishra @times­group.com

New Delhi: Sa­j­jan Jin­dal’s JSW Group is en­ter­ing the civil avi­a­tion busi­ness. It has bid for the Ben­galuru-Vi­jayana­gar route un­der the gov­ern­ment’s re­gional con­nec­tiv­ity scheme, its top ex­ec­u­tive said. “Our Group has sub­mit­ted the bid un­der the gov­ern­ment’s scheme and the bid is only for one route, which is Vi­jayana­gar to Ben­galuru. No listed com­pany is in­volved,” joint manag­ing di­rec­tor and Group’s chief fi­nan­cial of­fi­cer Se­sha­giri Rao told ET.

The foray into civil avi­a­tion would mean that the pro­posed SPV will need to get ap­provals from the avi­a­tion min­istry and the Direc­torate Gen­eral of Civil Avi­a­tion as a sched­uled com­muter air­line be­fore it launches op­er­a­tions.

He added that the group is not look­ing at this ven­ture as an en­tirely com­mer­cial ven­ture. “It is not a purely com­mer­cial ven­ture for us and we are look­ing at it more from a per­spec­tive of pro­vid­ing con­nec­tiv­ity to our plant. It may be­come a big busi­ness in the fu­ture but as of now our in­vest­ment is only in the range of about .₹ 20 crore,” Rao said.

Rao, how­ever, did not re­veal any de­tails on the type of air­craft that will be used to launch op­er­a­tions say­ing he is not aware of those de­tails.

He fur­ther said that about 25 to 30 peo­ple from their com­pany travel to Vi­jayana­gar daily. “This route will also help tourists trav­el­ling to Hampi,” he said. Tourists trav­el­ing to Hampi now have only the road and rail routes, which take about six hours from Ban­galuru. Hampi is a pop­u­lar tourist desti­na­tion, dot­ted with tem­ples and a UN­ESCO World her­itage site, with mon­u­ments dat­ing as far back as 1442 from the Vi­jayana­gara em­pire.

An Air­ports Au­thor­ity of In­dia of­fi­cial, when con­tacted, con­firmed that JSW Group has ap­plied, but re­fused to re­veal any fur­ther de­tails, as the bid­ding process is still on.

An­other avi­a­tion min­istry of­fi­cial, when con­tacted, said: “The pro­pos­als are from11air­lines, in­clud­ing Air In­dia and SpiceJet, and they ex­pect to kick­start op­er­a­tions at about 15 un­served or un­der­served air­ports soon.”

The Modi gov­ern­ment, in June last year, an­nounced a plan to pro­vide re­gional air con­nec­tiv­ity at a fare of .₹ 2,500 per hour of flight. Ac­cord­ing to the scheme, the gov­ern­ment would bridge the gap be­tween cost of op­er­a­tions through the re­gional sub­sidy fund that has been cre­ated by charg­ing do­mes­tic air­lines a charge per flight.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.