Saya Amusement to set up flight school

Saya Amusement Private Limited, an Ahmedabad-based company that manufactures amusement and water park rides besides setting up parks on its own, is foraying into flight schools business.

The company is planning to set up a flight school comprising 16 small aircraft, a small airport and a major repair and overhaul (MRO) centre at an investment of Rs 100 crore.

The company has tied up with Mumbai-based Suraj Water Park to form a 50:50 joint venture company "� Saya Suraj Aviation Private Limited "� with an initial paid-up capital of Rs 25 crore for its new venture. It has already purchased 16 Cessna 'Skyhawk' trainer planes.

"There is an acute shortage of 7,200 pilots in India. Moreover, 100 per cent foreign direct investment (FDI) is allowed for setting up a flight school and MRO in the country. Considering these factors, we decided to go in for the business," N D Rana, chairman of Saya Amusement, said.

The company was scouting for 1,000 acres of land and has already applied with the Gujarat government for its allocation, he added.

Since running a flight school tends to be a costly business, the JV company has already worked out its expenses and will be charging a fee of Rs 18 lakh per student. "We hope to earn a margin of 10-11 per cent," Rana said.

For its MRO services, the company plans to bill clients for Rs 30 lakh per plane a year. However, it is yet to apply with the Directorate General of Civil Aviation for the required clearances.