Air Deccan may hive off ATR business

Mumbai: Budget carrier Air Deccan, which has the largest network in India covering 60 airports and operating more than 300 flights a day, may hive off its highly profitable ATR Turboprop aircraft operations into a separate company.
The airline operates 23 ATR Turboprop aircraft (40 to 70 seater jets) and 18 bigger Airbus A320 jets.
While the helicopter business is already operating as a separate division (the company has a fleet of 10 helicopters and three fixed-wing aircraft), the regional business (with ATR aircraft) is likely to be spun off into a separate company.
"This is aimed at better operational efficiency and gaining better valuation. The routes operated by ATRs are more profitable as these fly to airports where Air Deccan enjoys monopoly. With an independent company, the ATR division can come out with a separate balance sheet," sources say.
Warwick Brady, chief operations officer, said this was one of the options being looked into.
04/02/07 P R Sanjai/Business Standard

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