Star Air reveals: Regional connectivity transcends short-haul routes

According to Star Air CEO Simran Singh Tiwana, the Indian market holds significant potential for regional aviation. Tiwana believes that if an operator makes strategic choices, sustaining business will not be an issue. The airline is aiming to double its passenger volumes this year by expanding its fleet and introducing three new destinations, excluding the upcoming launch of Jaipur on Monday.

Established in 2019 by the Sanjay Ghodawat Group, a diversified business house based in Kolhapur, Star Air currently operates a fleet of five Embraer aircraft. Under the Central government’s regional connectivity scheme, UDAN, the airline serves 16 destinations from its operational bases in Bengaluru and Belagavi.

Tiwana expressed optimism about the untapped regional potential in India, stating that regional travel could potentially grow five-fold in the next five years.

Also, he stated that operating a successful regional airline in India is “possible” if certain strategies are implemented. These strategies include selecting the right network that aligns with the aircraft being operated, which significantly contributes to sustaining operations. According to him, Star Air is currently profitable in terms of its operations.

UDAN Airport

Tiwana believes that regional connectivity should approach beyond short-haul routes and adopt a different perspective. He suggests considering connections between smaller stations and also major cities like Mumbai and Delhi. However, he acknowledges that wildlife issues, operational gaps in runways, and limited operating hours at certain UDAN airports pose challenges for regional air operators.

He emphasized that Star Air’s business model is distinct and also does not conflict with any other airline in India. They operate in a separate market and aim to expand their presence without competing directly with others.

“We are penetrating various markets and monopolizing routes,” he emphasized, highlighting the airline’s distinctive market approach.

As an exclusive operator of Embraer planes, the airline currently possesses four 60-seater aircraft (E145) and has entered into a lease agreement for four larger E175 planes with a capacity of 76 seats.

The fleet has already added one E175 plane, and they have scheduled the induction of the remaining three by September this year.

According to him, the decision to own aircraft in the initial stages of establishing the airline proved beneficial during the pandemic, enabling them to sustain operations. He emphasized the stark differences between operating owned and leased aircraft, stating that they are two completely separate strategies.

“In contrast, many startup airlines made mistakes,” he stated, possibly referring to regional carriers like Air Pegasus, Air Costa, and Air Carnival, which experienced initial success on regional routes but eventually ceased operations within the past 8-9 years.

Lease Model

In the past four-and-a-half years, the airline has been preparing to transition to the lease model. The strong operational background and cash flows have instilled confidence in lessors to lease out their planes.

Furthermore, the introduction of larger aircraft on the Bangalore-Hyderabad-Junagadh route is a strategic move to meet demand and gradually increase capacity. The airline aims to strike a balance and avoid being overly aggressive, allowing the routes to mature over time.

Star Air made history as the first regional carrier to offer business class and economy seating on its Embraer E175 jet, which commenced operations on the Bangalore-Hyderabad-Jamnagar route.

Approximately 20% of the airline’s flights will operate outside the UDAN scheme, while they anticipate around 12 UDAN routes to reach maturity in the coming months and be converted into commercial routes.

Star Air plans to participate in the fifth round of the regional connectivity scheme, with bidding open until June 1. They have also committed to submitting their bids within the given timeframe.

Also, Read: Indian Aviation News 

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