Aryan Cargo Express runs into funds crunch

New Delhi: Just two months into operations, Aryan Cargo Express Pvt. Ltd is short on money and has seen its chief financial officer (CFO) quit.
The New Delhi-based start-up was cleared by the Directorate General of Civil Aviation in February to fly cargo.
But it has had to halt operations as it ran into a funds crunch. Its single aircraft is parked in Coimbatore.
"They have been continuously delaying salaries," said an Aryan Cargo official on condition of anonymity. "We haven't got salaries for the past three months."
"I agree there has been a delay of two months (in paying salaries). Our launch was delayed so the process of getting funds also got delayed," chairman and managing director (CMD) Mukut Pathak said. "By Friday, we hope to clear all the dues."
He added the airline plans to raise funds through convertible debt in addition to a loan from State Bank of India to help streamline operations.
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Categories: Cargo Jun 2010