Budget carrier Air Deccan will start non-scheduled air services to the US and Europe using luxury jets, as it does not meet the government's conditions for scheduled operations on international routes.
Deccan Aviation, which operates the no-frills carrier Air Deccan, is planning to acquire two business jets for over Rs 100 crore (Rs 1 billion) for this.
Air Deccan has also set up a subsidiary in Sri Lanka, aimed at starting scheduled operations, to come around Indian regulations, which do not allow carriers with less than five years of service and a 20-aircraft fleet to operate international services.
Deccan Aviation, which already owns a fleet of 10 helicopters and two fixed-wing aircraft, is looking to acquire high-end luxury jet Lear 45 XR.
"Lear XRs, which cost $11 million per aircraft, can carry seven passengers and two crew members," Clive Lewis, general manager (marketing), Deccan Aviation, said.
According to industry analysts, non-scheduled operators currently have a market share of 1.22 per cent of total domestic traffic. Not many Indian airlines operate non-scheduled flights on international routes. Non-scheduled operators are also permitted to operate revenue charter flights to overseas destinations.
"High-profile delegations, corporate heads and politicians are the target group for non-scheduled operators. There are over 47 non-scheduled operators who mainly operate within the country," analysts said.
Deccan Aviation is currently offers flights to Dubai, Sri Lanka and Nepal. "We have recently acquired one more fixed-wing aircraft. The company is in the process of acquiring two helicopters, which will be deployed for offshore operations," Lewis said.
The acquisition cost for these three aircraft is estimated at over Rs 20 crore (Rs 200 million).
Meanwhile, the company's low-cost airline Air Deccan, with a market share of 21.2 per cent (June 2006), has the largest network in the country covering 55 airports. The airline currently operates a brand new fleet of 14 Airbus A320 aircraft and 22 ATR Turboprop aircraft.