Curtains for Deccan 360?

After all the hype that Deccan 360, also known as Deccan Cargo & Express Logistics, would be the next FedEx of India, the pioneer of India’s low-cost aviation is floundering.
Reason? No finances.
The good captain—he is the Chairman and Managing Director of Deccan 360—has had to give back the planes he received on lease from the Mauritius-based Veling.
The three Airbus 310s that had been converted to freighters were—according to those in the know—forcibly taken away for non-payment of dues.
The Deccan 360 chief, however, maintained that the planes were given back to the company.
Indeed, they had been taken on lease for three years, but Deccan 360 needed smaller planes.
“So we returned them and purchased ATRs,” he said.
Efforts to contact Deccan 360 or Capt. Gopinath failed as no one was willing to take calls.
The grounding of Deccan 360 comes barely a year after its launch.
The cargo airline started with quite an impressive fleet of three Airbus 310s and five ATRs.
While the 310s touched the metros and important cities, the ATRs flew to the smaller towns.
The aircraft, along with a whopping 1,000 vehicles, touched 50 centers in the country.
The infusion of finances from Reliance obviously did not help the sagging airline to revive its fortunes.
As news reached Ambani’s office that the planes were taken away, the Reliance top brass said they were thinking of withdrawing from the venture and divesting their stake.
Deccan 360’s present CEO, H. L. Rikhye, said that Reliance officials had indicated that they were not keen to invest in Deccan 360, but were “morally and otherwise supportive of the business venture.” It is now apparent that Deccan 360 could not deliver what it promised.
21/06/11 Air Cargo News

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Categories: Cargo Jun 2011, Deccan 360 Jun 2011