Air Deccan, the low-cost domestic airline, has planned to increase by December its daily flights from 70 to 100 as well as to secure a part of the "ethnic market" of West Asia in the foreseeable future
Most of the Air Deccan aircraft that await repainting are small single-aisle ATR jets. When contacted, the Kingfisher Airlines spokesperson said re-painting of aircraft is typically done when the aircraft visits the maintenance, repair, overhaul workshop for scheduled maintenance checks.
The transaction, which values Air Deccan at Rs 155 a share, would be through allotment of non-preferential shares to UB
Jayanth Pooviah, director and chief executive officer of Deccan Charters, confirmed the development.
India's first low cost airline Air Deccan has surpassed state-owned Indian to become the country's number two airlines with a market share of 21.2 per cent as of June this year.
Deccan Aviation, a new entry in the domestic airlines sector, failed to take-off as its stocks experienced brisk profit selling and plunged 34 percent on the first day of trading on Monday.
We live in hope that India and its airlines might finally grow up, notes Anuli Bhargava.
Several states are identifying greenfield or unutilised projects for low-cost airport.
Air Deccan, which was forced to sell 26 per cent to Kingfisher Airlines chairman Vijay Mallya's UB Holdings to keep its head above water a few months ago, is likely to break even before Kingfisher.
There's talk that the Reliance Anil Dhirubhai Ambani Group is eyeing a minority stake in the carrier. It's also possible that private equity players like Texas Pacific Group may want a slice of the low-cost carrier's equity.
The recent spate of technical glitches in aircraft has prompted the Directorate General of Civil Aviation (DGCA) to issue an order on July 18, making aircraft maintenance engineers (AMEs) with category B1/B2 licences the final authorities in certifying planes. This has put the spotlight on the availability of such personnel. According to the order, airlines were resorting to frequent one-off authorisation by the Category A certifying staff at transit stations, which is not in line with existing regulatory provisions.
Low cost airline Air Deccan on Tuesday said it plans to fly over four million passengers in the next financial year, four times more than the one million people it has flown since inception 18 months ago.
Air Deccan, India's first no-frills airlines, expects $120mn revenues in current fiscal.
After some initial take off turbulence, Gopinath is now actively steering the air cargo business steadily with equity infusion from Reliance Industries.
Air Deccan is looking for full-time Air Hostesses as well as On call Air Hostesses (part-time).
Low cost airline Air Deccan intends to raise private equity of $50-60 million and was in discussion with seven players in this context, its managing director G R Gopinath said in Bangalore on Thursday.
Deccan Aviation, which owns budget carrier Simplify Deccan, reported an improved performance for the third quarter ended March 2008, increasing its yields by 36 per cent and reducing operating losses by 45 per cent. The airline, however, continues to bleed and posted a net loss Rs 199.6 crore during the quarter (against a loss of Rs 213 crore for the same quarter last year), thanks to soaring oil prices, which increased 36 per cent during the quarter.
Air Deccan, which first started operations in March 2003, would float its maiden public offer by the middle of next year, a senior company official said.
With oil reaching record highs and competition intensifying, Captain Gopinath's chances of keeping his carrier afloat would have been more than slim. Employee's jobs and salaries would have been at stake if he had not sold to Vijay Mallya, says Anjuli Bhargava.
All 40 passengers on the flight are safe.
Air Deccan on Friday welcomed the enquiry by the Directorate General of Civil Aviation into reports that the low-cost carrier was over-booking its flights.
Low cost airline Air Deccan aims to raise up to 30 per cent of its total revenues from ancillary streams in three years, a three-fold jump from the current levels, its managing director, G R Gopinath said.
Air Deccan had also approved a plan to offer 10 per cent of the equity to its employees. The airline hopes to carry 4 million passengers during the current year and report revenue of Rs 1,000 crore.
Passengers flying to any destination on the Deccan network and carrying only one cabin bag, can tele check-in from 24 hours up to two hours prior to the time of departure, the airlines said in a statement.
Anjani Malik, a resident of Haryana, was not able to catch a flight from Kullu to Delhi in March last year and was told to wait for the next day, the exercise which lasted for four days at at a stretch. After the harassment, he decided to return to the capital at his own costs. Malik then approached the District Consumer Forum, Sheikh Sarai, claiming Rs 50,000 compensation following which the airlines was asked to pay Rs 30,000.
Aviation stocks - Jet Airways, Deccan Aviation, SpiceJet and Jagson Airlines - closed at their 52-week highs on the Bombay Stock Exchange on Tuesday in falling market. All the four stocks gained between 5 per cent and 20 per cent on Tuesday.
Low-cost carrier Air Deccan and liquor baron Vijay Mallya-promoted Kingfisher Airlines have agreed not to "poach on one another's territory and instead help each other."
