Thursday, June 07, 2007

Deccan revives congestion cess

New Delhi: It is a way of showing who calls the shots. Air Deccan, country’s largest low-cost carrier — in which liquor king Vijay Mallya took 26% stake last week for Rs 550 crore — has reimposed congestion cess of Rs 150 per passenger from Tuesday.
This is one of the first measures that the UB chief is likely to introduce in the coming weeks to turn around Air Deccan’s operations. “We have decided to focus on making Air Deccan’s operations profitable this year and this may involve taking some hard decisions,” a senior executive from the UB Group told ET. Imposition of Rs 150 congestion cess has been on the cards, the UB executive added.
Air Deccan had scrapped the congestion cess following objection from ministry of civil aviation.
Meanwhile, in a top-level appointment Air Deccan has brought in Anand Ramachandran as vice-president-finance. Mr Ramachandran has over 10 years of experience. His previous stints include Jet Airways and the Reliance Group.
07/06/07 Sudipto Dey/Economic Times
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