Push for regional connectivity by air

Indian tourism is opening its gates with VoA, concession on Himalayan climbing fees, virtual tours of heritage sites, a travel infoline and much more. What is needed now is quick connectivity to smaller towns without commercial flights. InterGlobe Establi

InterGlobe

Established Private Limited, branded as THE ESTD., is a subsidiary of InterGlobe Enterprises. The company was started in 2007 as InterGlobe General Aviation, with a focus on selling and servicing the Beechcraft range. Later, the portfolio was expanded to include LET, Cessna and the Sikorsky range of aircraft and helicopters. Currently, THE ESTD. provides a spectrum of services, whether it is the acquisition of a private jet by a corporate house or a start-up aviation charter company.

THE ESTD. can help promote tourism in the Himalayan states and within other states which are inaccessible or poorly connected. Fewer people travel to these regions, so a 9-seater Caravan turbo-prop or a 19-seater LET would be ideal instead of larger 40-70 seater aircrafts. “Their operating costs are so easy to work with that even if you have 6 seats filled on a 9-seater or 16 seats on a 19-seater, it makes economic sense,” says Lokesh Bardia, Associate Vice-President, InterGlobe Established Private Limited, ESTD.

THE ESTD. can also help with regional connectivity. Lokesh explains, “We are also looking at a niche industry, which probably has the biggest potential in India. Our turboprops would be ideal for connecting smaller cities. Surprisingly, the largest segment showing an interest in this comes from the smaller cities, not the metros,” he adds.

Tier-III cities are keen to increase their regional productivity, but a lack of long runways

Our turbo-prop range would be ideal for connecting smaller cities and towns. Surprisingly, the largest segment showing an interest in this comes from the smaller cities, not the metros

Lokesh Bardia Associate Vice-President, InterGlobe Established Private Limited, ESTD

and insufficient infrastructure are the major bottlenecks. Airports in Tier-III cities are predominantly meant for smaller aircraft. However, economic pressures and fear of social stigma attached with ‘super luxury’ are preventing local industrialists, landowners and politicians from making the purchase.

“Connecting smaller cities to each other and to the metros is where our aircraft would be very useful for the Indian economy. For example, in the Northeast where land travel would take 15-16 hours, the same distance can be covered in an hour by air. Or a classic example of connecting Surat with Bhavnagar, which is separated by the sea, but the distance is only 100 km – a 9- hour journey converts to a 20- minute flight,” clarifies Bardia. “We are very gung-ho on regional connectivity. Many state governments have initiated discussions and are keen to take this forward.”

Talking about the government support required, he goes on to say, “Taxes and infrastructure issues are the biggest deterrents to improving regional connectivity and that is why we are looking at some sort of regulatory support. Fuel costs constitute 40-50 per cent of overall costs. In addition to this, a 40 per cent fuel charge is levied. If the fuel surcharge is minimised, we will be able to reduce 16-17 per cent of our overall taxes. On the infrastructure side, parking is not readily available. Approvals also take time and it can be months before finally an aircraft is allowed to fly.”

Regional connectivity would not only be a fillip for our industry but also give a boost to the economy.