India halts airline takeoffs

Regulatory and security clearance have forced up to half a dozen new airline start-ups to delay starting operations in India's already overcrowded aviation industry, according to published reports. Until the end of 2005, Magic Air, East West Airlines, Jagson Airlines, Indigo Airlines and Indus Airways have announced their plans to fly in early 2006, but are yet to begin operations.
"We'll be launching by August end," said U K Bose, CEO of New Delhi-based Jagson Airlines.
Magic Air is waiting for regulatory approval for its founder, Nira Radia, who is a non-resident of India. This may be a problem for Magic Air as India only grants an airline operating permit to Indian citizens.
East West Airlines, which shut operations in mid-1990s due to debts, plans to restart operations sometime in 2006 after scheduling its debt repayments.
Further, industry analysts have pointed to the sudden surge in aviation fuel as another reason for the carriers postponing take-off.
20/07/06 Y. Sulaiman/eTN Asia/TravelVideo.tv

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