The Hindu Business Line : Fleet expansion: Air Deccan may finalise equity infusion soon

THE low-cost airline, Air Deccan, hopes to finalise its proposed private equity infusion within a month. The company, which plans to induct fresh capital of $60-70 million for its expansion plans, has short-listed seven investors with whom it was in talks to decide on the eventual investors and the quantum of equity to be allotted.

Capt. G.R. Gopinath, Managing Director of Air Deccan, said the additional funds would be deployed for acquiring more aircraft to augment its flight services on regional and main trunk routes. It plans to augment its fleet of aircraft and introduce new flights from Delhi to Jammu, Chandigarh, Amritstar and Dehra Dun.

Currently, Air Deccan operates its services with seven 48-seater ATRs and three Air Bus and would be adding five more ATRs and three Air Bus. The company also proposes to phase out old aircraft.

Unveils purchase card: Capt. Gopinath also announced the launch of a co-branded purchase card with Air Deccan-ICICI Bank Travel Agents card and said it would allow the travel agents to purchase air tickets through Air Deccan's online centralised reservation system on instant payment basis. This option will allow travel agents to avail themselves of a 40-day interest-free credit from ICICI Bank. Earlier, the agents had to settle their transaction in cash within two to ten days.

The purchase card would be allotted to the members of Travel Agents Association of India on the latter's recommendation. The purchase card would extend the credit facility to the travel agents, who account for 45 per cent of the airline's daily transaction of $3,00,000.Mr V. Vaidyanathan, Head-Retail Business, ICICI Bank, said it was a win-wind situation for the bank, the airline and travel agents. ICICI Bank would offer both secured and unsecured form of credit under the purchase care product. This concept could be extended to more businesses such as hotel industry and consumer retail sector, he said.