Bangalore: Air One Feeder Airline Pvt Ltd, a new no-frill airline promoted by retired Indian Airline officials, plans to begin operations from April 2004.

The Bangalore-based firm plans to operate 50-seater jets of Brazilian aircraft manufacturer Embraer on the south and western sectors, Air One Director J W Lobo told reporters in Bangalore today (Dec 23, 2003).

Air One has received a no-objection certificate from the Ministry of Civil Aviation, he said, adding the airline would not compete with major players on the trunk routes.

Lobo said Ernst and Young has been appointed to attract investors in the firm, which will have an equity base of Rs four crore. Air One plans to acquire two aircraft on dry lease from Embraer.

"The promoters will hold 60 per cent equity and the balance with investors," he said, adding the firm would raise funds from banks for working capital.

Lobo said Air One would operate initially in the South and the Western regions during the day time and plans to shuttle between Kolkata and Bangalore during nights to fly patients for the city-based Narayana Hrudayalaya.

He said an MoU was signed a few months ago with the heart hospital to ferry people from the eastern region, which receives patients from the north-east, besides neighbouring countries.