Crown Express has won Indian Government clearance for its investment proposal to launch a new, privately owned domestic airline operation by the end of the year.
According to the Indian civil aviation ministry, a no-objection certificate (NOC) is still under consideration to clear the airline to start flying. The next committee meeting to discuss the application is expected to be held in September.
Clearance has, however, already been granted by the commerce and industry ministry for a 1.11 billion rupee ($24.3 million) proposal to establish the airline. Around 60% of the money is expected to come from a group of Indian investors led by aircraft leasing specialist Neera Radia and her family, while the rest could come from foreign institutional investors and venture capital funds. Radia told local press that she wants the new airline to provide "affordable air travel to Indian consumers".
Civil aviation ministry officials say Crown Express plans to operate a fleet of Boeing 737s, but has not yet decided which series. The airline hopes to start with two-to-three aircraft, building up to a fleet of six, says the ministry. The carrier is expected to set up a hub in New Delhi.
Out of eight private domestic carriers which have won Government approval since the liberalisation of the market in 1993, only two have survived: Jet Airways, which has become India's second biggest airline, and Sahara Airlines.
Source: Flight International
