Low-cost carrier Air Deccan on Wednesday announced a tie-up with online travel portal Travelguru to provide budget hotel bookings and holiday packages to travellers. The tie-up will enable the airline’s passengers select and make reservations in 2,500 hotels located in 160 cities — including over 1,500 budget/economy hotels — through its Web site.
Archive for the ‘Air Deccan’ Category
Air Deccan, the Bangalore-based Rs 1,500 crore low-cost airline, is looking at shoring up its ancillary revenues to 26 per cent in the next three years from the present level of 9 per cent.
Ancillary revenues are non-passenger revenues that include catering (water and beverages), selling advertising space in in-flight magazines, collecting excess baggage charges, selling credit cards (at present, Air Deccan’s call centre executives sell ICICI Bank credit cards), carrying brand names on the aircraft (Sun Microsystem, Wipro and Wellspun), and sale of merchandise through inflight shopping.
Bangalore-based Air Deccan has appointed Ramki Sundaram as the company’s Chief Financial Officer. This follows the resignation of Finance Director MG Mohan Kumar. An investment banker in the aviation field, Ramki Sundaram, is joining the low-cost carrier from Investec Bank UK.
Deccan Aviation, which operates the country’s biggest low-fare airline, plans to turn its helicopter business into a separate company and raise money to expand the unit, Managing Director G R Gopinath said.
The Bangalore-based company will sell a stake to private investors in the proposed helicopter company and later consider an initial public offering, Gopinath said in an interview in Bangalore yesterday. The airline has begun preliminary work on the proposal, Gopinath said.
European regional airplane-maker ATR will team up with low-cost carrier Air Deccan for a training academy. The proposed facility, which will be set up in Bangalore, will train pilots and engineers. “This would be a 50:50 joint venture from ATR and Air Deccan.
“We will provide engineers and pilots to extend special and intensive training in two simulators installed in Bangalore,” a senior ATR executive told Business Standard. The executive, however, declined to divulge further details on the project. An announcement to this effect is expected today at the Aero Show 2007.
Deccan Aviation Ltd, which runs budget airline Air Deccan, will keep its ATR turboprop aircraft operations within company, Managing Director G R Gopinath said.
Gopinath’s comments late on Sunday followed by a media report, which cited Chief Operating Officer Warwick Brady as saying Air Deccan would consider, among other options, spinning off ATR operations into a separate company.
Deccan Aviation, which runs Air Deccan, is planning to shed up to 15 per cent stake to mop up another $75 million for funding new aircraft purchase.
During the current calendar year, the airline is expected to have cash of around $95 million, apart from the $75 million it plans to get from new investors. This is expected to be utilised over the next two years.
Air Deccan, India’s second-largest domestic airline by marketshare, has approached some of the country’s leading conglomerates to raise $75-100 million for its expansion plans. The low-cost airline has sounded out the Reliance Anil Dhirubhai Ambani group, which operates the country’s second-largest private telecom company, and a leading Delhi-based conglomerate about the investment, said a source familiar with the development.
Deccan Lanka, the Sri Lankan subsidiary of homegrown aviation company Deccan Aviation Pvt Limited has held back its plans to launch international operations, owing to the unstable political situation in the island country. Speaking to FE, a senior official at Deccan Aviation said, “ The plans for Deccan Lanka have been kept on hold currently, as the political situation in the country does not currently seem feasible for launching new operations from there.”
Deccan Aviation, which runs budget airline Air Deccan, has posted a net profit of Rs 9.64 crore for the quarter ended December 31, 2006, against a net loss of Rs 33.35 crore for the half-year ended December 31, 2006.
There are no prior-period comparisons as the company was listed in June 2006.
The improved performance was partly on account of other income of Rs 161.93 crore, which included Rs 132.69 crore that accrued as the second tranche of payment on aircraft sale.