Sunday, May 07, 2006

Club One Air plans to raise Rs 200 cr

New Delhi: India's first fractional ownership airline company Club One Air is cruising towards the market with plans to raise around Rs 200 crore.
The funds raised would be used to expand Club One's fleet size from nine now to around 17 over the next 12 months.
"We have decided to sell around 15% stake in the airline through private placement to a strategic investor. "Club One promoter Manav Singh said.
While Singh plans to raise around 40-50 crore through the private placement route, the remaining funds would be raised through debt and borrowings. "The market for fractional ownership aircraft is growing by the day. We already have nine planes now and in view of the growing demand, are planning to add another eight by this year-end,"he said.
The new aircraft would be in the seven-eight seater light and medium category. Club One Air provides investors a chance to own an aircraft at a fraction of the actual cost and run it as per their own requirement.
07/05/06 Byas Anand/Times of India
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