Deccan puts expansion on slow track

Mumbai: With its net worth eroded by half, Air Deccan, India’s largest low-cost carrier, has decided to slow down its expansion plans.
With a loss of Rs 340.55 crore for the last financial year, Deccan Aviation, the company that runs the airline, has chalked out a three-pronged strategy to return to profits.
Apart from slowing its expansion plan, the company has decided to go for sale and lease back of aircraft and will also cut down maintenance and repair costs.
“We have made a sale and lease back agreement with UK-based Pegasus Aviation for two aircraft and have posted a profit of $4 million,”Warwick Brady, chief operating officer, Air Deccan, told Business Standard.
In addition, Air Deccan has entered into a sale and lease back agreement with Rolls-Royce Partner Finance for two spare engines, resulting in a profit of $1 million. Further sale and lease back agreements would depend on market conditions, he added.
The airline is also planning to cut down its maintenance and engineering expenses.
02/10/06 P R Sanjai/Business Standard

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