UK group to invest Rs 950 crore in Turbo Aviation's new airline TruStar
- IBEF
- December 17, 2019
A UK based business group is preparing to enter the Indian aviation sector by acquiring majority stake in Hyderabad-based Turbo aviation.
Under UDAN scheme, the Turbo Aviation is planning to launch a new airline called TruStar starting next year. Turbo Aviation, which was founded by Mr V Umesh, had earlier launched an additional service that is TruJet commercial airliner which is in addition to other services like aircraft maintenance and ground clearance in the past.
"We had signed an agreement with a large UK business group to dilute majority stake in Turbo Aviation in its favour. We will announce the name of our partner and other details once the security clearances are in place," Mr Umesh said. TruStar airline, which is yet to be operational has already been given 10 routes across seven states including Uttar Pradesh under the UDAN Scheme.
According to Umesh, the company's strategic investor intends to invest as much as GBP 100 million (about Rs 950 crore) in the airline company operations over a period of five years. The TruStar has plans to introduce its operations in February-March next year with an initial fleet of 5 ATRs and 5 Airbus 320s. After that, the company also plans to apply for Pan-India operations as the foreign partner would want to build a large Indian airliner over a period.
"Indian aviation sector, be it airport operations or the airline business, has not been impacted even 1 per cent by the current economic downturn and this itself speaks of tremendous business potential as well as the scope for new operators that exist in the domestic airline services," Mr Umesh said. "At present there are only four big airline companies operating in India. Obviously, there is a scope for new players in this growing sector. The country had already added 40-50 new airports for expansion of domestic air travel under the UDAN and there will be more airports in future," he added.
The new airline company intend to have a fleet of 10 ATRs, 10 AirBus 320s besides 4 Made-in-India Droniers of Hindustan Aeronautics Limited (HAL) for operations and additionally expand its fleet with new flying routes, according to its founder. Once the company is operational, it will be the first Indian commercial airliner to launch the Made-In-India Droniers as the company intends to induct them for operating in certain routes in Uttar Pradesh where landing of ATRs was not possible.
The routes awarded to TruStar include four routes in Uttar Pradesh, three routes across Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Goa, two routes between Hyderabad and Prakasham Barrage of Andhra Pradesh and between Chennai and Ramnad in Tamil Nadu and a large multi-destination route connecting Raipur, Rurkela, Jharsuguda, Jagadalpur with Bhubaneswar, Visakhapatnam and Hyderabad.
The upcoming airliner is also planning to add commercial amphibious (sea plane) to its convoy. According to the company founder, TruStar is considering transforming the connectivity in the North and Southern Sector to begin with, keeping in mind more flying routes in future.
Mr Umesh presently holds 6-7 per cent stake in TruJet as the Hyderabad-based MIAL Group had subsequently got a controlling stake following the launch of the airlines in 2015.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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