East West Airlines returns this September

 ...In a low-cost avatar, sans the flourish of 90s

BY A CORRESPONDENT
May 8, 2006

EAST WEST- HISTORY

East West Airlines took to skies in the first flush of opening skies in 1992, and had a successful run for quite some time. The airline then had a fleet of 11 aircraft including 8 Boeings and three Fokkers. The company was listed in the stock market in 1994, selling 40% of its stake and raising revenues. It operated to major cities and became the premier private airline in India, much before Jet Airways captured that position. However, the company's fortuned started declining after the assassination of its MD Thakiyuddin Wahid by the underworld in Mumbai. This led to rumors of underworld links. The company folded up soon thereafter.

East West Airlines, the first private airline to hit the Indian skies in 1992, will be relaunched in September this year. According to East West Airlines managing director Faisal Wahid, the airline has concluded most of the discussions with its creditors and lenders to settle all outstanding dues.

With the boom in Indian aviation, the airline is now planning to make a dignified comeback. East West had to settle several dues, amounting to over Rs 70 crore to creditors. The team of creditors was led by Indian Bank. The airline also owes some dues to Indian Oil for fuel and Airports Authority of India. Once these are settled, the company wants to regain its DGCA licence and start flying. It also wants to get relisted on the stock exchanges.

The airline had, in fact, plans to start flying as early as May. But the directors decided to hold on for some time, until al loose ends are tied up.

East West Airlines is planning to establish its engineering base in Hyderabad or Bangalore. Later, East West will fly to Category II and III airports. East West wants to fly to all airports it was flying before it shut shop.

Unlike its earlier avatar, East West will start flying as a low-cot airline with two aircraft. The fleet may be expanded to seven aircraft by the end of the first year of operations.

If East West successfully takes off, it will be the second instance of a defunct airline having a second chance at life in the sky. Last year, ModiLuft reinvented itself as SpiceJet, and started flying. ModiLuft, like East West, had started flying in the early 1990s, but was grounded before the turn of the century.