SOURCE: AFI
In a bold move that marks a significant pivot from his food-tech roots, Zomato founder and CEO Deepinder Goyal has invested $20 million in LAT Aerospace, an ambitious aerospace startup focused on developing low-cost 24-seater short take-off and landing (STOL) passenger aircraft.
This private sector initiative aims to transform regional air connectivity in India by offering affordable and accessible aviation solutions, positioning itself as a direct challenger to public sector endeavors like Hindustan Aeronautics Limited’s (HAL) 19-seater Hindustan 228 aircraft and the National Aerospace Laboratories’ (NAL) proposed Saras MkII, which has been under development for years.
LAT Aerospace’s mission is to bridge the gap in India’s regional air connectivity, particularly in underserved and remote areas where traditional aviation infrastructure is either absent or prohibitively expensive. The startup plans to design and manufacture 24-seater STOL aircraft capable of operating from small airstrips, requiring minimal infrastructure—potentially as compact as a parking lot. This approach eliminates the need for large airports, baggage handling systems, and extensive security setups, making air travel more affordable and accessible for smaller towns and cities.
Unlike conventional aircraft or even vertical take-off and landing (VTOL) systems designed for intra-city air taxis, LAT Aerospace’s STOL aircraft are tailored for intercity routes, with a range of up to 1,500 km. The company envisions a network of “air-stops” across major cities and hundreds of smaller locations, creating a seamless web of regional air travel that could revolutionize how Indians connect across vast distances.
LAT Aerospace’s entry into the aviation sector introduces a fresh private sector perspective to a space traditionally dominated by public sector undertakings like HAL and NAL. HAL’s Hindustan 228, a 19-seater aircraft, has been positioned as a key player in India’s regional connectivity initiatives, particularly under the government’s UDAN (Ude Desh ka Aam Nagrik) scheme, which aims to make air travel affordable for the common citizen. The aircraft is designed for short-haul flights and can operate from semi-prepared airstrips, making it suitable for connecting remote regions.
Similarly, NAL’s Saras MkII, a proposed 19-seater multi-role light transport aircraft, has been in development for over a decade. Despite its promising design and intent to serve both civilian and military purposes, the project has faced significant delays due to funding constraints, technical challenges, and shifting priorities. While the Saras MkII aims to offer improved performance over its predecessor, the Saras MkI, its prolonged development timeline has raised questions about its ability to meet India’s urgent regional connectivity needs.
LAT Aerospace’s initiative poses a direct challenge to both the Hindustan 228 and the Saras MkII. With a larger seating capacity of 24 passengers, the startup’s STOL aircraft could offer economies of scale, potentially lowering per-seat costs for operators. Moreover, the private sector’s agility, combined with Goyal’s proven track record of scaling businesses, could give LAT Aerospace an edge in terms of innovation, speed to market, and cost-efficiency—areas where public sector projects have often struggled.
The potential impact of LAT Aerospace’s STOL aircraft on India’s regional connectivity cannot be overstated. By offering a low-cost alternative to traditional aircraft, the startup could democratize air travel, making it viable for smaller towns that lack the infrastructure for larger planes. Additionally, its focus on fuel-efficient and lightweight designs could reduce operating costs, appealing to regional airlines looking to expand their networks without incurring heavy losses.
However, the road ahead is not without challenges. The aviation industry is notoriously capital-intensive, with high barriers to entry, stringent regulatory requirements, and complex certification processes. Developing a new aircraft from scratch requires significant technical expertise, rigorous testing, and substantial investment—far beyond the initial $20 million Goyal has committed. Competing with established players like HAL, which benefits from government backing and decades of experience, will also test LAT Aerospace’s resilience.
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