CityAir Launch delayed

BY A CORRESPONDENT
July 24, 2006

A Dubai-based Keralite's domestic airline, called City Air, has had to delay its launch, scheduled for earlier this year, as it has yet to get the required clearance from the Indian government, according to a Times of India report.

The NRI businessman, Aniyankutty, who is also the owner of the Clarion Shipping company in Dubai, was optimistic and said, according to the report, "The documentation process is now going on in Delhi and we expect to get all clearances soon."

The proposed airline, which is registered as a private company based in Chennai, was set to lease three aircraft in order to operate 18 daily domestic flights, and had worked out business plans last year itself.

The company would work with an initial budget of $1 billion, out of which 34 per cent stake would be held by the NRI's wife, and the rest would be raised through loans.

However, according to the report, one reason why the clearance may have been delayed is because the NRI is chairman of Jaihind TV channel, which is the state Congress-backed channel. The channel is expected to be launched on August 17.