Ghalia Petrol LLP director Zahid Hussein says the UAE-based firm is considering re-equipping its Air Odisha and Air Deccan units with ATR - Avions de Transport Régional turboprops as part of a major restructuring of the two Indian carriers.
Speaking to Money Control, Hussein said the introduction of four ATR72-600s could be looked at during the second quarter of 2019.
Ghalia Petrol LLC recently acquired a majority shareholding in GSec Monarch Private Ltd, which owns both Air Deccan and Air Odisha.
Given their recent problems in fulfilling their UDAN route obligations, Hussein said the most pressing priority would be to inject USD10 million and restructure and stabilize both carriers.
"In the first phase, we are looking at an investment of around $10 million to clean up the slate and restart operations... We need fund infusion on an immediate basis," Hussein said adding that the injection would have to be done within 90 days, so by around mid-January or February 2019.
Air Odisha, which operates a single Beech 1900D, has faced numerous difficulties in servicing the recently inaugurated Jharsuguda Airport in northern Odisha province. For its part, Air Deccan has struggled to service its UDAN route obligations which encompass Delhi International-Pantnagar-Dehra Dun, and Delhi to Kullu, Shimla, Agra, and Ludhiana. It operates three Beech 1900Ds. Both airlines have been warned by the central government that they risk losing their respective route authorities unless they revamp their respective operations.
"In the short term, we are looking at restarting operations as soon as possible. We ourselves want the airlines to fly with a clear vision. We want to give a better experience," Hussein added.
