A newspaper that wanted to fly

Hyderabad/ New Delhi: How did the Reddys, with their opulent lifestyle and ambitious, high-profile, new ventures in sports and aviation, as well as top political connections, fall from grace?
Reddy, known for his fleet of Bentleys, custom-made cigars and flashy parties, was also building a niche aviation business. While DCHL, the listed firm, owns the 75-year-old newspaper business, the IPL team and the bookstore chain, Odyssey, the aviation business are outside its balance sheet and run by a firm called Aviotech, “created with the clear objective of capitalising on vast, untapped niche areas in the rapidly-growing corporate aviation and defence aerospace segments in India”, by providing “seven-star luxury experiences at a fraction of the cost of owning or chartering a private jet,” according to the company website. This was the second attempt at the aviation business, after an earlier one to launch a cargo airline, named Flyington Freighters, got caught in the turbulence of the slowdown.
Sources said both Flyington and Aviotech had placed orders for some 10-12 aircraft each. While the former had placed those with Airbus, Aviotech was said to have placed orders for 10 Sukhoi Superjet 100s with the Russain plane maker. Reports in trade journals suggest both these orders were in the middle of payment disputes. In early 2011, Flyington reportedly cancelled orders for 12 Airbus A 330s, placed in 2007, and its name did not figure in the January 2011 list of order and delivery figures. Cancelling such huge orders comes at a cost, as an airline would have to forfeit deposits that run into millions of dollars.
An email sent to Jeff Livings, CEO, Aviotech, did not elicit a response. Livings, a veteran with 35 years in the aviation business, was the chief operating officer of Flyington before he moved to lead Aviotech a couple of years ago.
07/08/12 Prashanth Chintala, B Dasarath Reddy & N Sundaresha Subramanian/Business Standard

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Categories: Indian Aviation- In General Aug 2012