Group Askedn To Steer Clear Of Aviation

McKinseys advice comes at a time when the Tatas proposal to float a domestic private airline with FII participation has already been cleared by the FIPB. The Tatas intend to get into the cargo operations business too and have sought permission to set up warehouses within the airport areas.

The airline proposes to employ 10 per cent of its trunk routes capacity in category-II routes and at least 50 per cent on category-III routes. In its third year of operations, the airline is looking at introducing two 50-70 seater aircraft.