Deccan Aviation to enter air cargo business

Mumbai: Deccan Aviation Ltd. plans to launch air cargo services through a new subsidiary and a top official said on Monday it would sell a 1.96 percent stake for up to 295 million rupees to Investec Bank (UK) Ltd.
Investec, which had funded Deccan Aviation's aircraft, was offering to buy 1.96 million shares at 150 rupees each, Managing Director G.R. Gopinath told Reuters.
Shares of Deccan Aviation, which runs budget airline Air Deccan, fell 5.6 percent to 101 rupees in the Mumbai market.
"We have a long association with Investec and they wanted a stake," Gopinath said. "The funds will be used for expansion."
He also said the company's cargo operations should start operations in six to nine months.
The cargo subsidiary would have its own fleet but subcontract engineering and maintenance to Air Deccan, he added.
30/10/06 Reuters/NDTV.com

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