HolidayAir to launch in March

HolidayAir, the Lankan low cost airline which was waiting in the wings for more than a year, will finally take off in March next year.

“We are looking to launch on March 10 and will be occupying our operational offices at the Bandaranaike International Airport (BIA) by February,” Arjun Ruzaik, CEO, HolidayAir told The Sunday Times FT.

He said that there will be a consortium of both local and foreign investors coming on board of the airline with a US$ 20 million investment. “A consortium headed by Asia Capital will be investing locally, while there is a consortium of Malaysian investors and we have also tied up with a leading regional airline,” Ruzaik added. He explained that the biggest challenge was to ensure that all the investors were happy with their investment given the present environment in the country. “From an investor’s point of view, the environment was not conducive, but they were positive on the longer term,” he said.

Airline sources say that Air Asia, headed by aviation whiz kid, Tony Fernandez of Malaysia has acquired 49 percent of the company but Ruzaik refused to comment on this new stakeholder. He said that Paul Ratnayake, senior partner of the law firm, Paul Ratnayake Associates will be Chairman of the company. He said HolidayAir will have only one A320 aircraft, but within two years, when the complete roll out happens, the company will have eight aircraft. “Presently we will be flying only four routes (Cochin, Calicut, Trichy and Trivandrum in India), but in 24 months, we will be flying 16 to 20 routes including the Far East, Middle East and Near East, Malaysia, Thailand and Singapore, and the Maldives,” Ruzaik explained.

He said that passengers can expect a 20 to 60 percent cost saving on any given day, when compared to other carriers like SriLankan.

HolidayAir, together with Deccan Air and Expo Air were granted approval to fly to four destinations in India late last year by the Civil Aviation Authority (CAA), but the latter two dropped out of the race after a much publicised battle.

Ruzaik added that he doesn’t see any major issue with new state-subsidised airline, Mihin Air, which is due to start soon, saying that competition is healthy.