Ladhani ready to invest more in Air Deccan

Bangalore : The Vice-Chairman of Air Deccan, Mr S.N. Ladhani, whose initial funding led to the birth of India's first low-cost carrier, wants to plough more money into Air Deccan even as the carrier continues to lose at least Rs 2 crore every day. "It is my baby. I will invest more in the company," Mr Ladhani told Business Line. He, however, did not disclose how much he plans to invest further.
When Mr Ladhani, who is also a key bottler for Coca-Cola Company in India, initially funded the airline, his stake was as high as 76 per cent and post-IPO he and his family members own about 13.5 per cent. Mr Ladhani said apart from the company, he in his individual capacity was in talks with investors in the US for raising up to $100 million in the airline. He expected the funding to be wrapped up before the end of this month.
Mr Ladhani explained that till now the airline had focussed on increasing its network and market share. Now the focus has shifted to profitability and hence a major route rationalisation was on currently, he said.
He ruled out any move of the airline to sell stake to Kingfisher Airlines. "Our mindsets are different. We are used to saving money while others are used to overspending," Mr Ladhani said.
09/05/07 K. Giriprakash/Business Line

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Categories: Air Deccan May 2007