Indian start-up flybig (FLG, Indore) is in the final stages of certification with a launch date still scheduled for October 2020, according to media reports.

Original plans for an April take-off were delayed by COVID-19, but Flybig Chief Executive Officer Srinivas Rao told Moneycontrol: "The process to get an Air Operator's Certificate is in the final document stage. The DGCA (Directorate General of Civil Aviation), the aviation regulator, and the Civil Aviation Ministry, have been helpful. We hope to start operations in October.”

Based in Indore (west-central India), FlyBig plans to start operations with two leased ATR72-500s, expanding to a fleet of 20 aircraft, said Rao, a former pilot, flight instructor at Etihad Airways (EY, Abu Dhabi International), and former senior manager at Kingfisher Airlines (Mumbai International).

He said the airline's first ATR72-500 would be delivered from Australia in September. According to the ch-aviation fleets ownership module, the 65-seater aircraft currently registered as VN-B214 is to be registered as VT-FBB (msn 688), an 18.35-year-old ex-VASCO - Vietnam Air Services (0V, Ho Chi Minh City) secured from ATR - Avions de Transport Régional. It has been in storage since December 2016. The latest Flightradar24 search shows the aircraft was undergoing maintenance at Ho Chi Minh City on July 27. Quoting “sources in the industry”, Moneycontrol reported FlyBig was also talking to Hindustan Aeronautics to buy four Dornier aircraft to be turned into freighters or air ambulances.

Rao said the airline was using its own funds to launch operations, but would look at raising money later. Its business plan centres around the Indian government's UDAN regional connectivity development scheme, by which the government subsidises underserved routes to smaller towns to encourage air travel and economic development.

The scheme reportedly has had mixed success for other airlines, but Rao said FlyBig was also betting on a lower cost base because of COVID-19. He said an over-supply of aircraft had seen the cost of aircraft leases drop by 15%; lower fuel prices; accompanied by cheaper and readily available experienced manpower because of layoffs across the industry. Rao said Flybig currently had 70 employees with plans to increase its workforce to about 100 by launch date.

He said FlyBig’s plans were also based on regional tourism taking off as international travel declined because of COVID-19. From Indore, the airline plans to connect first to Jabalpur, Bhopal, and Raipur; and expand to Ahmedabad and Nagpur later. Connections to Rourkela, Lanjigarh, Ujjain, and Chhindwara are also on the drawing board. It plans to eventually deploy seven to nine aircraft in the country’s north-east region.

Meanwhile FlyBig parent Big Charter has joined forces with Flight Simulation Technique Centre and UAE-based Imperial Capital Investments in submitting an offer for India’s bankrupt Jet Airways (JAI, Mumbai International). The plan is to revive the defunct carrier on trunk routes, while FlyBig would feed into the network from smaller markets.

The other shortlisted bidder is a consortium comprising UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan. The deadline for the selection of investors was recently postponed beyond August 21 due to the ongoing pandemic.