New airline starts flights to Dubai and Vienna

[October 22nd 2008]

In a brave move considering the perilous state of the airline industry, a new airline is to start flights from Stansted and Manchester airports to Dubai and Vienna.

Air Sylhet has been formed by chairman Kabir Khan and three other businessmen of Bangladeshi origin who are now based in Birmingham. The new airline has leased an Airbus A320-200 and is set to launch its first flights on November 9th.

Despite the current doom and gloom in the airline industry and the general economy, Air Sylhet believes that now might not be a bad time to start a new airline.

“Oil prices are declining and this trend looks set to continue, reducing the single greatest burden on an airline’s balance sheets. The dollar is also declining, meaning that aviation costs (lease rates, fuel etc.) that are usually expressed in dollars are also declining,” the airline states on its website.

“Aircraft are becoming available in the lease market and these are on more reasonable terms, allowing airlines to acquire new aircraft at acceptable prices to service new and growing routes.

“Charter airlines are being steadily chased out of the short haul market by the low cost carriers, into medium haul routes not explored before. This segmentation of the market will help to stabilise charter operators in the face of fierce competition,” Air Sylhet adds.

The airline says it plans “to fly to multiple destinations at convenient times to the main airports”. The first destinations of Dubai and Vienna have been chosen because the airline feels there is room in the market for more flights to these destinations.

Next year Air Sylhet also has plans to launch flights to Bangladesh, possibly via Vienna, and Saudi Arabia. The airline says it wants to provide customers with “safe, value driven, point-to-point air services”.

If Air Sylhet is to be believed then 2009 could turn out to be a much better year for airlines. “Although distressing, recent airline failures have meant that seat capacity has been significantly reduced, whilst demand has been maintained, meaning that more passengers will be chasing fewer seats. The message is simple: if an airline can survive the winter of 2008, then it can expect a bumper year in 2009,” the airline claims.

Written by: Nick Purdom