Bengaluru-based Star Air has announced a major fleet expansion plan that could propel it as the largest pure play regional airline.
Currently, Star Air has nine aircraft (4 Embraer E175s and 5 Embraer E145s). On Monday it announced plans to grow fleet size to 25 aircraft in three years tapping growth opportunities in tier II and III markets.
While it will induct two E175 aircraft in the current fiscal, four more will join the fleet in FY26. Star Air operates 36-48 flights daily on Udan and non-Udan routes and will increase services to 56 in six months on induction of new aircraft. Udan refers to Ude Desh ka Aam Aadmi, the government’s flagship regional connectivity programme.
The Sanjay Ghodawat group airline’s expansion plan comes as the government prepares to extend the Udan scheme beyond 2027. IndiGo, which is the largest operator of Udan flights, is considering another aircraft order. The newest regional airline, Fly 91 also plans to ramp up its fleet to 32 planes in five years. On the other hand Alliance Air is struggling.
Alliance Air is the largest pure play regional airline with 21 aircraft. However the government-owned airline is hamstrung by fund shortage and grounded aircraft. Alliance Air is operating only around 14 planes now and has scheduled 26 per cent fewer flights in the winter schedule compared with last year. In contrast Star Air is scheduled to operate over 45 per cent more flights per week in the winter season.
Cost-focused
“We are cost-focused from day one. We believe slow and steady works for us,” said Captain Simran S Tiwana, CEO, Star Air.
Around 65 per cent of Star Air’s network comprises Udan routes. The airline is increasing operations on non-Udan routes and is also exploring operations from Jewar and Navi Mumbai airports. “We recently launched flights to Ahmedabad and Tirupati from Kolhapur,” Tiwana said.
One of the challenges of the Udan scheme has been in continuation of routes after the end of government support. Airlines get viability gap funding (VGF) support for Udan routes for three years. Airlines also enjoy an exclusivity over such routes during the period. “Star Air has continued to operate a lot of these routes commercially even after the end of VGF support. Some of these routes like Belagavi-Ahmedabad, Bengaluru-Kalaburagi are doing well,” Tiwana added.
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