IndiGo, the country's largest airline by market share is understood to be planning to set up a regional airline for connecting small towns using 70-80 seater ATR aircraft, a source in the know of the plan told ET. 

According to the source, IndiGo promoter Rahul Bhatia met officials in the civil aviation ministry recently and discussed a plan to set up a subsidiary only to operate on regional routes. 

"In the backdrop of the government planning to allow airlines a bigger choice to service remote areas where they are comfortable with operating as opposed to forcing them to go to certain areas, IndiGo plans to start a regional carrier with 18-20 ATR aircraft to begin with," the source told ET, requesting anonymity. When asked about the development, IndiGo President Aditya Ghosh termed it as "false". 

Civil Aviation Minister Ajit Singh has long been talking of enhancing regional connectivity in India by "nudging" airlines to buy smaller aircraft, compatible for landing on a shorter runway. In that sense, analysts read IndiGo's move as following budget carrier SpiceJet's model of providing regional connectivity using Bombardier Q400 aircraft.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News