Chennai: The buzz in the aviation sector may be far from over. At a time when older airlines are struggling to stay afloat, a new airline from Coimbatore is gearing up to take to the skies with its low-cost service.
Set to launch in April, Air Carnival, which is promoted by Coimbatore Marine College, or CMC group, that runs educational institutions in south India, will focus on short-haul routes where it can fly profitably, and where a vacuum has been created by large airlines such as Kingfisher and Paramount Airways folding up their operations.
The tentative break-even target has been set for 2017, says Manish Kumar Singh, chief executive officer, Air Carnival. Analysts say the airline's success will depend on careful route planning and its ability to take advantage of the troubles that have befallen SpiceJet. SpiceJet, which is in the throes of a financial crisis, is flying fewer flights in comparison to last year to save costs. As the market for air travel in southern states has been steadily growing, analysts feel, Air Carnival can make quick progress by stepping into the space that SpiceJet has left empty.
Aviation is not new to the CMC group. It has been associated with the sector since 2008 through its educational institutions that offer a multitude of courses in the subject. In 2013, the group set up Air Carnival Charter Services.
27/01/15 TE Narasimhan/Business Standard
Set to launch in April, Air Carnival, which is promoted by Coimbatore Marine College, or CMC group, that runs educational institutions in south India, will focus on short-haul routes where it can fly profitably, and where a vacuum has been created by large airlines such as Kingfisher and Paramount Airways folding up their operations.
The tentative break-even target has been set for 2017, says Manish Kumar Singh, chief executive officer, Air Carnival. Analysts say the airline's success will depend on careful route planning and its ability to take advantage of the troubles that have befallen SpiceJet. SpiceJet, which is in the throes of a financial crisis, is flying fewer flights in comparison to last year to save costs. As the market for air travel in southern states has been steadily growing, analysts feel, Air Carnival can make quick progress by stepping into the space that SpiceJet has left empty.
Aviation is not new to the CMC group. It has been associated with the sector since 2008 through its educational institutions that offer a multitude of courses in the subject. In 2013, the group set up Air Carnival Charter Services.
27/01/15 TE Narasimhan/Business Standard
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