While the government is upbeat about the prospect of bringing the hinterland closer to the mainstream with its regional connectivity scheme, few would have envisaged that UDAN would help bring rival airlines together in the quest to acquire new aircraft.
Air Odisha and Air Deccan, who won the bid to operate flights on regional routes, have joined hands to get a sweeter deal on aircraft imports and informed the Directorate General of Civil Aviation (DGCA) that they plan to induct the 19-seater Beechcraft 1900D aircraft for flight operations under the scheme for regional connectivity, sources said.
While Air Odisha will import five aircraft, Air Deccan will get three planes to commence operations by September this year. Both the rival airlines have collaborated to import aircraft spare parts — seen as a unique arrangement in the aviation network — for the Beechcraft 1900D aircraft.
“We plan to induct minimum five Beechcraft 1900D to commence operations under the UDAN scheme by September,” Air Odisha chief executive officer Sanjay Arya said. “The negotiation with the leasing firm is over.”
“We have made an arrangement [with Air Deccan] to induct aircraft spares for running smooth operations for the next three years since we have a common aircraft type. To provide uninterrupted air connectivity, we need aircraft spares on standby. You cannot afford to have planes grounded,” Mr. Arya said.
Air Deccan founder G.R. Gopinath did not respond immediately to multiple calls and a text message.
Aviation analysts said the collaboration of both the regional players on aircraft spares bodes well for the industry. “Air Odisha and Air Deccan synergizing core operations and maintenance makes both strategic, financial and management sense since core commonalities exist with both operators in the aircraft they operate and the routes they intend to fly,” said Mark D. Martin, founder and CEO at Martin Consulting India.
Code share alliance
“Consider this arrangement more as a micro version of a code share alliance between two airlines where one chooses shared services as opposed to setting up two monolith operating entities.”
Mr. Martin called for a reduction in the average customs clearing time for aircraft spares and parts, which he said, has not come down as “archaic procedures” are in existence since 1990s. The Centre, in March this year, awarded flying rights on 128 routes connecting 70 airports to five airlines — SpiceJet, Alliance Air, TruJet, Air Deccan and Air Odisha Aviation — in the first round of bidding of the UDAN scheme.
Fares under the scheme are capped at ₹2,500 for an hour’s flight and airlines get subsidy from the government for losses incurred as a result of lower fares. Air Odisha has won the rights to operate 50 routes and Air Deccan has bagged 34 routes through a bidding process. Both the airlines will connect the most number of unserved and underserved airports among the five airlines selected to operate flights under the UDAN scheme.
The five airlines are mandated to start flight operations under the scheme by the end of September, failing which the carrier will lose their licence to start services on the selected route.
Alliance Air, SpiceJet and TruJet have already started flights on various routes under the scheme.