Goa-Based Regional Airline FLY91 Plans to Raise ₹150 Crore for Expansion

Goa-headquartered regional carrier FLY91 is planning to raise ₹150 crore from a mix of existing and new investors to fund its upcoming expansion. The airline, which commenced commercial operations in March 2024, recently closed a first tranche of ₹63 crore.

Harsha Raghavan, Chairman of FLY91 and managing partner of early investor private equity firm Convergent Finance, stated that the fresh capital infusion will support the airline's growth strategy. Previously, the carrier had raised approximately ₹250 crore, primarily through compulsory convertible preference shares (CCPS), which have now been converted into equity shares.

FLY91 currently operates a fleet of six ATR-72 aircraft and is engaged in discussions with aircraft lessors to induct additional planes. According to the management, the airline's flights are currently recording load factors of over 90 per cent. The carrier recently added Tirupati as a new destination, connecting it with services originating from Hyderabad, Rajahmundry, and Vijayawada.

Despite operating within a challenging aviation environment, the airline continues to pursue network expansion. Managing Director and CEO Manoj Chacko previously noted that the fuel efficiency of the ATR-72 aircraft, combined with a lean operating model, has assisted the company in containing costs. Immediate expansion efforts are directed toward strengthening connectivity from the airline's existing operational bases in Goa and Hyderabad.

To support its scaling operations, FLY91 has recently made key additions to its leadership team. Krishnan Balakrishnan, formerly the deputy CEO of Jazeera Airways, joined the company as president and chief operating officer earlier this month. Additionally, Jitendra Kushwah has been appointed as chief financial officer, following a similar tenure at flight training service provider FSTC.

Discussing the carrier's operating model, Raghavan noted that the airline maintains a single-class ATR-72 fleet with minimal operational complexity. Management has emphasized that the primary focus remains on maintaining operational discipline and prudent capital allocation as the regional carrier pursues its next phase of growth.

"FLY91's strategy to raise ₹150 crore following an initial ₹63 crore tranche demonstrates a disciplined approach to funding regional aviation infrastructure in India. Operating a single-class turboprop fleet like the ATR-72 allows young carriers to control operating costs while addressing underserved regional routes. Maintaining high load factors above 90 percent is a positive operational indicator, but long-term viability in the aviation sector will ultimately rely on strict capital allocation, fleet expansion management, and navigating tough operating environments efficiently." — Dr. Shishir Gupta, Founder & CEO, StartupLanes