Bikash
Choudhury
Aviation world over has remained a very glamorous business;
though, except a few, most airlines globally operating in International,
National and Regional domain struggle very hard to survive. The challenges for
all types of airlines remain the high cost regime; that includes high cost of
aircraft, fuel, and maintenance and even the cost of highly skilled personnel
essential to run an Airline with certain degree of efficiency. The problems
encountered by regional airlines operating to connect far-flung areas of a
state like Odisha still remain daunting; as the number of airstrips is limited
and relatively small that even can’t accommodate mid size aircraft with 50-80
seating capacity and other stumbling block remain the Pricing. As the current
level of pricing (Rs.12-15 per K.m) would deter customers and lower pricing
would make it much more difficult to break even and therefore would become
unviable in the long run. What should be the way forward? Like any normal
business plan we need to start with the need for air connectivity with
reference to Odisha. Now, policy makers grudgingly accept the need for an air
link, not only for the Industrial & Business destinations like Rourkela,
Jharsuguda, Badbil and Keonjhar; but also to the interiors of Koraput, Bolangir
and Bhawanipatna if not for business; at least to facilitate better
administration, policing, infrastructure development and healthcare. One
instruction of Chief Minister that is constantly being flouted by senior
officials in Govt. is touring of interior districts and night halt at those
places; the reason for the same is not lack of intent but due lack of logistic
and air connectivity. Further, keeping in view the quality of road and rail
infrastructure in the state; therefore, CM even has remained helpless on that
score. If Odisha were to progress faster then air linkages need to be
established sooner than later by marrying the commercial objective of aviation
with public purpose.
From the commercial point of view
the selection of aircraft remains the key to success of airline and it would
also remain valid incase of regional aviation in Odisha. I guess 50-80 seater
mid size dronier/bomabadier aircraft would be ideal for the state and the
aircraft need not be brand new; rather, 5-10 yrs old aircraft in dry/weight
lease would be best to drive down the cost. The airfare should remain little
over the II class AC train fare for similar distance. As far Govt. is concerned
first of all it should make available the airstrips for a midsize aircrafts to
the regional airlines and also consider waiving the sales tax for five years
and should also contemplate to contribute a million rupees a year per interior
destination to the operator as “Interior Air Connectivity Bonus” after full
year of operation. Central Govt. should also chip in to waive the Income Tax
for Regional Airlines for a period of 5 years as they did earlier successfully for
the Software Industry; just to attract and spur the inflow of capital to the
sector. Further, in the interest of regional air links; operators should
consider innovative flight schedules to reduce cost and attract more and more
passengers. Operating aircraft in clockwise destinations and reverse also could
be an option while providing multiple connectivity. Keeping in view of aviation
history and the fate of one time prominent regional airline Vayudoot; the
verdict is out, without initial state patronage regional air links would remain
a pipe dream not only for Odisha but for other states as well.
Twitter: @ideasofhope Blog: www.ideasofhopebikash.blogspot.com
E-mail:streben.market@gmail.com
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