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The Indian Civil Aviation Ministry has awarded a no-objection certificate to Royal Airways, paving the way for the new low-cost carrier to start services in early 2005.

Royal Airways was formed out of the ashes of the former airline ModiLuft and is to follow a new pricing model based on the demand and availability of seats on each individual flight. The airline will start services on among others the lucrative Delhi-Mumbai and Delhi-Bangalore routes using five Boeing 747-400 aircraft.

Another low-cost carrier Kingfisher Air, owned by brewery magnate Vijay Mallya, is also expected to start services in early 2005 after receiving a no-objection certificate from the government, reports Rediff.com.

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