Business Daily from THE HINDU group of publications
Thursday, May 10, 2007
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Business Daily from THE HINDU group of publications Thursday, May 10, 2007 ePaper |
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Air Cargo Corporate - Diversification Deccan Chronicle group floats global cargo airline company Our Bureau
"On the nearly $1 billion in financing that the aircraft purchase would require, the Reddy family has invested Rs 225 crore in the venture."
Mumbai. May 9 The Deccan Chronicle group has established an international cargo airline company Flyington Freighters Ltd. The new company, which will start services from July this year, has placed orders for purchase of six A330-200F cargo planes from Airbus at a cost of $175 million each. While the aircraft delivery is slated for 2009-2010, Airbus has agreed to lease two aircraft to the company in the mean time.
Passenger Segment
The agreement for purchase was inked here on Wednesday by Mr John Leahy, Chief Operating Officer, Customers, Airbus; and Mr T. Venkattram Reddy, Chairman, Flyington Freighters. Mr Reddy said that international cargo movement in India was with foreign carriers and that there was no domestic player around. The promoters propose to ferry cargo across Asia, Europe and Africa. Asked whether he was interested in the passenger segment, he said it was too overcrowded for entry. On the nearly $1 billion in financing that the aircraft purchase would require, Mr Reddy said the family has invested Rs 225 crore in the venture and that more would follow. Besides there would be cash accruals from the time the company starts operations in July, he said.
Freighter Planes
Mr Leahy said that he had also had initial discussions with Jet Airways and Air Deccan regarding freighter planes. The A330-200F had its first industrial launch in January this year. The mid-sized aircraft is capable of carrying 64 tonnes over 7,400 km in `range mode' configuration, or 69 tonnes up to 5,390 km on `payload mode.' The plane is said to offer 30 per cent more volume than other freighters in its class, and the main deck cargo loading system can accommodate both pallets and containers. The A330-200F is a derivative of the popular A330/A340 family, which sold over 1,000 worldwide, said Airbus officials. Airbus said Flyington was the first cargo airline to buy the A330-200F.
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