Tuesday, June 14, 2011

Deccan 360 in fire fighting mode likely to raise Rs 200 cr

Bangalore/Mumbai: Deccan 360 is not taking orders, as it claims it is re-aligning its services.
“We are re-engineering our services to serve our customers better. We have not been taking orders for the past couple of weeks and have been told not to book till further orders,” said an executive. He, however, added that they will be back in business soon, though he cannot commit himself to a time frame.
Behind this re-engineering process lies a story of execution which industry watchers feel could not match up to the vision charted by its famous and outspoken founder, G R Gopinath. In the past decade, Gopinath had changed the canvas of the Indian civil aviation sector with his low-cost Deccan Aviation before selling it out to Kingfisher Airlines.
Senior officials at Deccan Aviation, however, maintained that operation was suspended because of a system upgrade. “Operations were suspended for two weeks in May due to certain glitches. It had to be realigned with our business processes, and now we are back,” the official said.
Bangalore-based MindTree Ltd is managing the software development for the company. Also, Deccan 360 does not have its aircraft. It had three Airbus 310s, each with 38 tonnes capacity. They were leased from Mauritius firm Veling. While Veling said the professional understanding between them and Deccan 360 remains unchanged, the latter said they have returned the aircraft due to maintenance problems and are in discussions with vendors to procure four aircraft, more suited for their operations.
15/06/11 Raghuvir Badrinath & Aneesh Phadnis/Business Standard
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