Captain Sanjay Mandavia, the promoter of FlyBig airline, insists that the letter of intent that was signed at the recent Hyderabad airshow for the airline to acquire 10 de Havilland Twin Otter aircraft is “binding”. He says the airline “has put the PDP (pre-delivery payment), which ranges between 5 and 10 percent”. The airline plans to use these aircraft on short-distance routes and hopes they will provide a viable alternative to taxis.
At the moment, the airline has two ATR aircraft, one of which is on a wet lease with the crew, and another is on dry lease. Edited excerpts from an interview:
Has the airline put up any money for the 10 Otter series aircraft? Can you give some idea of the amount because normally you can book an aircraft by paying 10 percent?
We have paid 10 percent. We have put the PDP (pre-delivery payment) which ranges between 5 and 10 percent.
Will you get the aircraft through sale and leaseback (SLB)?
All options are open. We are looking at a finance lease, operating lease or SLB.
By when will the first of the 10 aircraft arrive?
I was told two or three aircraft are ready, which can be delivered immediately. (It will happen) as soon as we get our Directorate General of Civil Aviation approval and licence approval.
DGCA and licence approval for what?
We are already operating ATR. Once we get approval for Twin Otter, we will start.
Why is the airline going for an aircraft which is a 1965 design and is old?
This is the Twin Otter 400 New Generation. They (de Havilland) keep upgrading. The Airbus 320 was built in 1985 and now they have the New Engine Option. The Twin Otter 400 is the latest version. A lot of modifications have been done. It has become fully glass cockpit unlike earlier. It is designed and built for 35-40 minute flights.
Given that the Twin Otter weighs less than 5,700 kg, the airline will get many concessions that are available to smaller aircraft. Will that help subsidise operations?
That is why we chose this aircraft. Apart from the fact that there will be only one pilot, the pilot will not have to be an airline transport pilot Licence category holder, which are expensive licences but we will not compromise on safety by putting a youngster who has little flying experience.
Where will you deploy the aircraft?
We will start with Uttar Pradesh, Madhya Pradesh, Gujarat and Maharashtra. These are states with many airfields, which makes a business case for us.
We are not ruling out operating a couple of seaplanes because these are amphibian aircraft. Our main target market is taxi operations. People are paying anywhere between Rs 15 and Rs 20 a kilometre by taxi. Suppose someone wants to go from Chhindwara to Bhopal, if he hires a taxi, it will take to-and-fro charges. Our cost is one-way, which will be less than what a person will pay for up-and-down travel.
The airline is taking 10 aircraft. At about $6 million an aircraft, the airline is looking at about $60 million in capital investments.
We have domestic investors on board. We have international banks looking at this project. Besides, de Havilland has their own financing arm, Longview. They are also looking at funding this aeroplane.
When will the first aircraft arrive?
July-August. Our market audience is different. We are looking at the pilgrimage traffic, the traffic going for holidays.
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