AFL, Singapore PE firm tie up for cargo airline

Mumbai: Cardinal Aviation Partners (CAP), a Singapore-based PE firm, has entered into an agreement with AFL Logistics, the logistics & supply chain management subsidiary of the Mumbai-based AFL group, to float a domestic cargo airline venture in India, Quickjet.
According to sources, CAP will hold majority stake in the venture while AFL Logistics will have a 13% stake. “We have entered into an agreement with CAP and intend to launch the service by December 2008,” said a top AFL executive, who requested anonymity.
The move is significant for AFL Logistics, as the company makes its entry into the air cargo space with this dedicated freighter service offering. As per the initial plan, Quickjet will flag off services with two Boeing 757s. The fleet will be expanded later, depending on the volumes.
The routes on which the freighters will ply are being worked out. Sources said Quickjet will be headed by Natesan Ramesh, as the CEO, while Captain Benjamin Solace, a Philippines based aviation professional, will take charge as the head of flying operations.
The business plan of Quickjet is expected to be quite similar to existing air cargo players like Blue Dart. While Quickjet will service dedicated AFL Logistics cargo, unutilised space on the freighter will also be leased to retail customers.
19/10/07 Ashish K Mishra/Economic Times

To Read the News in full at Source, Click the Headline

Categories: Cargo Oct 2007, Foreign Oct 2007