Air Deccan to spin off ancillary biz into separate profit centres

New Delhi: After closing the current round of fund raising, low-cost carrier Air Deccan would restructure the company, spinning-off ancillary businesses such as charter, maintenance repair overhaul (MRO), cargo and training into separate profit centres, expand the company’s management bandwidth by inducting senior and mid-level professionals, and bring all its activities under the Air Deccan brand.
The company will soon appoint a consultant to work out the new organisational structure, sources in investment banking circles told ET.
The parent company, Deccan Aviation, would be renamed Air Deccan.
As per initial plans, each of the hived off businesses — to be 100% subsidiary of the parent brand Air Deccan — would be run by an independent professionals, including foreign expats. For instance, the cargo company is expected to be operational before the year-end, managed by a group of expat professionals, likely to join in a few months.
The MRO and training businesses would be run in association with technical partners. Plans for the charter business includes extending it to business jet service for corporates, sources indicated.
21/04/07 Economic Times

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Categories: Air Deccan Apr 2007