Anil boarding Air Deccan?

Bangalore: Has Deccan Aviation managing director Capt G R Gopinath closed in on a financial investor for his budget airline Air Deccan?
On Thursday, the Street was abuzz with a strong rumour that the pioneer of low-cost aviation could be within striking distance of a deal with Reliance’s Anil Dhirubhai Ambani Group (ADAG). Industry sources in the know of Gopinath’s talks with various investors said a final word is still some time away.
“Of what I know, Capt Gopinath’s discussion with ADAG is in advanced stage, but there are still some issues that need to be addressed. Unless those are looked into, we cannot say with certainty whether the deal is happening or not. Captain is also in talks with a couple of private equity firms and overseas corporate investors,” said an industry source.
Gopinath is in the process of raising $75-100 million for the expansion of his business. He has revealed he could dilute between 15 and 26% stake of his airline to a suitable professional (not strategic) investor.
An analyst said the rumour was sparked by Capt Gopinath’s Mumbai visit, from moving on to London.
18/05/07 Praveena Sharma/Daily News & Analysis

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Categories: Air Deccan May 2007, New May 2007