The Hindu Business Line : ICICI, 3 others in race for Air Deccan's 26% stake

ICICI Ventures and three other investors are some of the frontrunners for picking up 26 per cent stake in Air Deccan, which is raising up to $50 million to fund its expansion plan.

"In a week's time, we will convey to our stakeholders and our partners the name of the new investors," the Air Deccan Managing Director, Capt G.R. Gopinath, told newspersons on Wednesday.

He said there would be more than one investor though one of the shortlisted investors has expressed his intention to pick up the entire 26 per cent stake in the airline.

Capt Gopinath said he had held talks with Mr Richard Branson of Virgin Atlantic, who had earlier expressed his intention to invest in a domestic airline in his personal capacity.

In case Mr Branson agrees to pick up a stake in the airline, he will need prior government clearance, Capt Gopinath said.

Business jets: Air Deccan's parent, Deccan Aviation, was also planning to enter the corporate business jet segment and his firm had shortlisted Bombardier, Gulfstream, Learjet 45, Falcon and Cessna for buying the jets, he said.

"We plan to acquire about 15 such aircraft in the next five years. We will get three of them in the next two months. The final decision will be taken during the next two months," he said.

"We are eyeing the seven- to 13-seaters, which cost around $20 million each and plan to take delivery by January or February next year," he said.

$45-m simulation facility: Deccan Aviation was also planning to set up a $45-million simulation facility in Bangalore to train pilots and a school to train technicians, Capt Gopinath said.

"There will be four such machines to train pilots for the Airbus 320s and the ATRs. It can also be used by other pilots in the South Asian region. This will enable us to drive down costs," he said.

Helicopter workshop: Deccan Aviation Ltd, the country's largest helicopter charter firm, has set up its maintenance and overhauling facility to service Bell helicopters near Bangalore. It has been certified by Bell Helicopter Textron and the Director General of Civil Aviation (DGCA) to operate the Bell customer service facility (CSF).

The facility will maintain airframes and gear boxes, besides carrying out component overhaul of Bell 206 and 407 helicopters operating in South Asia, including India.

The Bell Vice-President for Asia-Pacific, Mr Max Wiley, said the Deccan workshop is the second such facility in India, with the first one being operated by Air Works in Mumbai.

"With the civil aviation sector emerging as one of the drivers of the Indian economy, we see a huge potential for marketing our copters to the public and private organisations," Mr Wiley said.

He said Bell considers India as an important market, next only to the US, with the prospects of tapping its growing services sector, especially heli-tourism, air ambulance and pilgrim centres for chartered trips, he said.

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