Saturday, January 27, 2007

No-frills airlines ready war chest for expansion

New Delhi: Low-Cost carriers are on a fund raising spree. Delhi-based Spicejet and Bangalore’s Air Deccan are in the process of raising funds to build war chest for massive expansion of their fleet.
SpiceJet just finished raising around Rs 300 crore by divesting up to 25% stake. The Tata group, through two of its investment arms, picked up 7% stake for Rs 75 crore. SpiceJet is in the process of firming up orders worth around $400 million for 10 Boeing 373-900 aircraft to be delivered in 2009.
Air Deccan plans to raise up to $75 million over the next three months by diluting around 15% equity to part finance 12 aircraft purchases — comprising eight ATR and four A320 — that are to be delivered in the current calendar year.
The total fund requirements will be around $300 million, most of which will be met through sale-lease-buyback process.
27/01/07 Sudipto Dey/Econmic Times