Now Reading: FLY91 to raise Rs 150 crore for expansion plans
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FLY91 to raise Rs 150 crore for expansion plans
FLY91, the Goa-based regional airline, is planning to raise Rs 150 crore from existing and new investors to fund its growth. The airline, which began operations in March 2024, recently raised Rs…
FLY91, the Goa-based regional airline, is planning to raise Rs 150 crore from existing and new investors to fund its growth. The airline, which began operations in March 2024, recently raised Rs 63 crore in the first tranche. Chairman Harsha Raghavan said the airline has flight loads of over 90 per cent and has announced Tirupati as a new destination with services from Hyderabad, Rajahmundry and Vijayawada.
The airline operates six ATR-72 aircraft and is in discussions with lessors to add more planes. It had previously raised around Rs 250 crore, mostly through compulsory convertible preference shares, which have now been converted into equity. FLY91's immediate expansion plans focus on strengthening connectivity from its existing bases in Goa and Hyderabad. The airline has also strengthened its management, hiring Krishnan Balakrishnan as president and COO and Jitendra Kushwah as CFO.
Indian Opinion Analysis
FLY91 is entering a crowded regional aviation market where many smaller carriers have struggled with high fuel costs and pricing pressure. The airline's bet on ATR-72 turboprops, which burn less fuel on short routes, mirrors the model that helped IndiGo succeed domestically but at a much smaller scale. With just six planes and loads above 90%, the real test will be whether it can add capacity fast enough to capture market share without overextending its balance sheet. The Rs 150 crore target, if met, would give it roughly 18 months of runway at current burn rates. Watch for the next fleet addition announcement as the key signal of whether growth plans are on track.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
