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Business News/ Companies / News/  New low-fare airline Air Pegasus to start flying from 12 April
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New low-fare airline Air Pegasus to start flying from 12 April

The low-fare airline aims to focus on South India for now with introductory flights connecting Bengaluru, Thiruvananthapuram and Hubli

Air Pegasus is the third airline to be launched in India in the past year, after AirAsia India and Vistara.Premium
Air Pegasus is the third airline to be launched in India in the past year, after AirAsia India and Vistara.

Bengaluru: Bengaluru-based low-fare airline Air Pegasus’ maiden flight is set to take off from India’s information technology capital to Hubli on 12 April, flying in the face of concerns about the viability of standalone regional airlines.

Air Pegasus, the third airline to be launched in India in the past year, after AirAsia India and Vistara, aims to focus on South India for now. Its introductory flights will connect Bengaluru, Thiruvananthapuram and Hubli.

“Positioning of regional airline is not by chance, it is by choice," Shyson Thomas, managing director of Air Pegasus, told reporters in Bengaluru on Wednesday, underlining the potential opportunity in the under-served region.

Following the launch, Air Pegasus will look at eventually operating flights to Kozhikode, Kochi and Puducherry.

With a fleet of three ATR 72-500s, Air Pegasus wants to position itself as “a right-cost airline" and plans to offer all-inclusive fares, with no hidden costs, even providing food on board, unlike other low-cost airlines.

Kapil Kaul, South Asia CEO of consulting firm Capa, said Air Pegasus could face “viability challenges" as a stand-alone entity due to pricing pressures in the market. Kaul said it was “critical (for Air Pegasus) to be well capitalized as the road to profitability is likely to be long drawn and painful."

Air Pegasus will face competition from established names such as SpiceJet and start-ups such as FlyEasy in the southern region.

According to Capa, Indian airlines have accumulated over $10 billion in losses and closer to $16-17 billion of debt over seven years, while the airline industry requires around $2.5 billion in the next 12 months to fuel expansion and meet operational expenses.

In the past 10 years, the industry saw the grounding of Kingfisher Airlines, Air Deccan (which had merged with Kingfisher), Air Mantra, Deccan 360, MDLR Airlines, Paramount Airways and Indus Air. That hasn’t deterred potential new entrants. Besides Air Pegasus, more airlines such as Air One, Zexus Air, Premier Air, Turbo Megha, Air Carnival and Zav Airways are waiting to take to the skies.

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Published: 02 Apr 2015, 12:28 AM IST
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