Kerala, a growing hotspot for new start-up airlines will witness the launch of Alhind Airlines in a few months from now. Launching an airline was a natural progression for Alhind as they are already rooted in the travel and tourism industry, but managing operating costs, stiff competition from new as well as seasoned players, routes planning etc seems like a task in itself.
Even as the airline management is busy getting the required approvals and making an action plan ready for launch, Mathrubhumi English reached out to Mohammed Haris Thattarathil, Chairman of the Alhind Group of Companies. Here's what he had to say:
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Alhind Group is into the travel and tourism business. What propelled you to venture into an airline business?
The decision to venture into the airline business was a natural progression for Alhind Group, given our deep-rooted experience in the travel and tourism industry. Our extensive network, customer base, and understanding of the sector have equipped us with the necessary foundation to operate an airline successfully. We believe that launching an airline will provide us with greater control over the travel experience we offer our customers, enabling us to deliver personalized and seamless journeys.
How do you plan on tackling the challenges like managing operating costs and taking on competitor airlines with much larger fleets?
Managing operating costs is a significant challenge in the airline industry. To address this, we have implemented a comprehensive strategy that includes cost-effective fleet selection, efficient operations, strategic partnerships etc. We have chosen the ATR 72-600 aircraft as our initial fleet, known for its fuel efficiency and suitability for regional operations.
We will leverage our existing infrastructure and expertise in the travel industry to streamline our operations and minimize costs. We will focus on maximizing revenue through various channels, including ancillary services, cargo transportation, and strategic alliances.
Regarding competition, we recognize the presence of larger airlines in the Indian market. However, we believe that our unique value proposition, coupled with our strong brand and customer loyalty, will enable us to carve out a niche in the market.
We will differentiate ourselves by offering exceptional customer service, competitive fares, and convenient flight schedules.
Can you throw some light on the initial investment plans?
Our initial investment in the airline venture is estimated to be between Rs 200 crore and Rs 500 crore. We plan to gradually increase our investment to Rs 3000 crore, which will support our fleet expansion and operational growth.
To fund this expansion, we will explore various financing options, including equity, debt, and strategic partnerships.
Kerala has four airports. What are your plans for local operations? How do you gradually plan to scale up your international operations, can you share some tentative deadlines that you are looking at, for domestic as well as international launch?
We plan to leverage Kerala's four airports to establish a strong presence in the domestic market. However, we are looking to make Kochi as our primary hub. Our initial focus will be on connecting major cities within South India, gradually expanding our network to other parts of India and eventually international destinations.
We aim to commence domestic operations by the end of this year. And we anticipate launching international flights within two years of starting domestic operations, subject to regulatory approvals and market conditions.
What kind of airplanes are you looking at and what sort of customisations can be expected to enhance passenger experience?
Our initial fleet will consist of ATR 72-600 aircraft, known for their fuel efficiency and suitability for regional routes. As we expand our operations, we may consider adding larger wide-body and narrow-body aircraft like the Airbus A319, and A320 to accommodate longer-haul flights.
Our fleet expansion plans include acquiring more than 20 aircraft for getting eligibility for international operations.
What about crew uniforms, recruitment, and the ethos of the airline?
We are developing a distinct brand identity inculcating India’s rich culture for our airline, which will be reflected in our crew uniforms. We will recruit highly qualified and experienced aviation professionals to ensure the safety and efficiency of our operations. Our ethos will be centered around providing exceptional customer service, safety, and reliability.
How competitive will Alhind be when it comes to ticket fares?
We aim to offer competitive fares to attract passengers. While we cannot disclose specific pricing details at this stage, we will carefully consider market dynamics and our operational costs to determine our pricing strategy. Our goal is to provide an excellent flying experience to customers with competitive pricing.
What about your connectivity plans and target destinations? What were your reasons for choosing these destinations as your launch routes?
Our initial focus will be on domestic routes within South India, connecting major cities like Kochi, Thiruvananthapuram, Bengaluru, and Chennai. We will gradually expand our network to include other parts of India and eventually international destinations. We will be identifying key destinations based on demand, tourism potential, and economic growth.
What are your expectations from the government in terms of concessions?
We are actively engaging with the government to explore potential concessions and support for our airline venture. We would like to see continued investment in airport infrastructure to facilitate our growth. We seek clear and supportive regulatory frameworks to streamline our operations.
Our aim is to connect all four airports in Kerala, making air travel accessible to a broader range of passengers.
However, some routes may not be economically viable due to logistical challenges. In such cases, we would seek support from the state government in the form of Viability Gap Funding, similar to the support provided by the central government under the UDAN scheme.
The aviation sector is currently grappling with supply chain issues coupled with a pilot and AME (skilled labor) shortage. What are your views?
The current challenges facing the aviation sector, such as supply chain disruptions and labour shortages, are significant concerns. We are closely monitoring these developments and taking proactive steps to mitigate their impact on our operations.
To address the shortage of skilled labour, we will be partnering with aviation training institutions and may invest in training programs to develop our pool of trained personnel.
Kerala seems like a hotspot for start-up airlines currently. How do you propose to be different from other start-up airlines in India?
Kerala's growing tourism industry and increasing air travel demand make it an attractive market for start-up airlines. We will strive to provide an exceptional customer experience through personalized service, comfortable amenities, and competitive fares.
Alhind's 30+ years of industry experience, 80 Kerala branches, 10000+ B2B agents and 20000 crore turnover provide a deep understanding of the local market and culture that will enable us to cater effectively to the needs of Kerala's travelers. We will actively engage with the local community and support social and economic development initiatives.
Published: 19 Oct 2024, 09:48 am IST
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