The Hindu Business Line : Air Deccan to reveal aircraft acquisition plans in early Jan

AIR Deccan, the country's only low-cost airline, will announce a decision on the 30-new turbo aircraft that it plans to acquire in the first week of January next year.

"We are in the process of deciding which aircraft to acquire. A decision will be taken shortly although the official announcement will be made only around January 6 or 7 after the Christmas and New Year break is over," the Managing Director of Air Deccan, Captain G.R. Gopinath, said.

Although Air Deccan is likely to decide on acquiring 30 aircraft of the ATR 72 type, Capt Gopinath declined to comment, saying a final announcement would only be made in January.

"We plan to start acquiring the aircraft from May next year and plan to acquire six aircraft every year. When we acquire these aircraft we will phase out some of the older aircraft," Capt Gopinath said. The airline has also received quotations from other aircraft manufacturers, including Bombardier, for supplying the 30 aircraft.

A part of the funds for acquiring these aircraft will be garnered from the funds raised through the divestment of the airline company's equity. Air Deccan is expected, in the next few days, to make a final announcement on who would be the beneficiary of the 26 per cent equity stake divestment. The airline hopes to raise about $50 million from the divestment of its 26 per cent equity holding.

Meanwhile, the relationship between Air Deccan and the European aircraft manufacturer is set to grow with a pilot training centre coming up in Bangalore soon. The training centre, a joint venture between Air Deccan and ATR, will have a simulator and offer training to not only pilots of Air Deccan but also those from other airlines of India and the region.

"We want to make this a globally competitive place," Capt Gopinath said.

Capt Gopinath is in France for the delivery of an ATR aircraft, which is to be used by the airline to launch its North India operations.

The North India operations will begin later this month from Delhi and will see the airline offer regular flights from Delhi to cities such as Kanpur, Agra and Amritsar.

`IPO in 5 years' time'

AIR Deccan plans to offer some of its equity to the public. Its Managing Director, Capt G.R. Gopinath, said that the company had a mandate to go public within five years.

"Five years is the outer limit (for going public). We may do it in two years. We are already going in for private placement. This is the first step for the IPO," he said.

Air Deccan is already in the process of finalising plans for divesting 26 per cent of equity and a decision on who would pick up the equity is expected shortly.

The domestic aviation sector is seeing a lot of activity on the markets in the recent past. Jet Airways is also expected to enter the market soon.