Financial Daily from THE HINDU group of publications
Wednesday, Dec 15, 2004
Financial Daily from THE HINDU group of publications Wednesday, Dec 15, 2004 |
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Logistics
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Airlines Air Deccan to finalise plan to acquire 30 aircraft Ashwini Phadnis
New Delhi , Dec. 14 AIR Deccan has initiated moves to tie up the financing requirements for the planned acquisition of 30 Airbus A-320 aircraft valued at $1 billion. The airline top brass is in Paris to meet with representatives of Rothschild and Airbus to finalise the acquisition programme. The airline plans to go in for outright purchase of 15 Airbus A-320 aircraft while the rest will be acquired through the leasing route. Confirming the development, sources said Air Deccan plans to start inducting the Airbus aircraft from September this year and will have all the 30 aircraft in its fleet within six years. The Paris meeting is also likely to see official financing agency extending a letter of guarantee a move which should facilitate the airline getting finance at a much better rate of interest, sources said. Officials indicated that there should be little difficulty in getting the guarantee as the aircraft purchased or acquired would be considered as an export from the region and therefore beneficial to it. "The aircraft would be used for increasing the numbers of routes on which the airline flies and also to enhance the frequency of flights operated," Captain Gopinath told Business Line. Meanwhile, the Airline has signed a "preliminary document" for divesting a 26 per cent stake in Air Deccan to a consortium comprising ICICI Venture and Capital Group. "We have entered into a preliminary document which has just been signed. We will make a formal announcement in the next 8-10 days," Captain Gopinath said.
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