NRI's domestic airline launch delayed

Thiruvananthapuram: The launch of City Air, a domestic airline floated by a Dubai-based Kerala businessman, has been delayed as it is yet to get clearance from the Indian government.
City Air is floated by Aniyankutty, owner of the Clarion Shipping company in Dubai, and was scheduled for launch early this year.
The airline is registered as a private company with its operational headquarters at Chennai.
With their business plans ready in 2005 itself, City Air had planned to lease three aircraft to operate 18 flights daily.
City Air had worked out an initial budget of Rs 1 billion, of which Aniyankutty and his wife would own 34 percent stake, while the rest of the money would be raised through loans.
Reports indicate that one reason for the delay in City Air's take off could be Aniyankutty's involvement with the state Congress party-backed Jaihind TV channel.
18/07/06 Times of India

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