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TruJet to add 10 destinations with 7 aircraft under UDAN scheme

Hyderabad-based TruJet, one of the private airlines, which has bagged travel routes under UDAN (Ude Desh ka Aam Naagrik) scheme is planning to add 10 destinations with seven aircraft.

The airline started operations in July 2015 and is currently catering to seven destinations with 16 flights.

Antara Dey, spokesperson of the airline said that over the next two years, the airline is planning to add 10 destinations with seven aircraft. Of this, five will be under UDAN scheme, including Mysore, Bidar, Hosur, Salem and Vidya Nagar.

Alliance Air, the regional arm of Air India, SpiceJet and TruJet have won rights to operate flights under the government’s regional air connectivity scheme, which seeks to give people from Tier-II and Tier-III cities a chance to fly at a ticket price of Rs 2,500.

Airlines operating under the UDAN scheme have to ensure that the prices of at least 50 per cent of the seats on their flights are available at a price of Rs 2,500 each for an hour of flying.

The Centre and state will provide viability gap funding for the airlines operating on the UDAN routes to ensure profitability of these flights.

Trujet is planning to deploy ATR72-500/600 with a 72-seat capacity.

Dey, mentioned earlier, said that the airline is looking at 77 per cent PLF (passenger load factor) and expects to make money in a year.

She added that the airline is funded directly by promoters and do not have any plans immediately to look at external funding.

Prices deployed in the existing three UDAN schemes range from Rs 1,670 to Rs 2,000, she added. The routes, which are operating under this scheme are — Hyderabad-Nanded-Hyderabad and Hyderabad-Cuddapah-Hyderabad.

TruJet was the third airline from south India to take off. The low-cost airline, which is backed by actor turned-former union minister Chiranjivi’s son Ram Charan, who is also an actor, launched its service in 2015.

It started with three aircraft to its fleet to expand operations. The airline, which roped in former Air Deccan and Kingfisher officials, has been focussing on Tier-II cities. It also came out with a new idea, where it will offer road connecting service to its customers.

Source: www.business-standard.com

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