Monday, December 16, 2019

UK group to invest Rs 950 crore in Turbo Aviation's new airline TruStar

Hyderabad: A UK based business group is planning to enter the Indian aviation sector by acquiring majority stake in Hyderabad-based Turbo Aviation.

Founded by V Umesh, Turbo Aviation is planning to launch a new airline called TruStar to run the commuter air services under UDAN scheme starting next year. It had earlier launched TruJet commercial airliner in addition to other services like aircraft maintenance and ground clearance in the past.

"We had signed an agreement with a large UK business group to dilute majority stake in Turbo Aviation in its favour. We will announce the name of our partner and other details once the security clearances are in place,"Umesh said on Monday. The yet to be operational TruStar airline has already been awarded 10 routes across seven states including Uttar Pradesh under the UDAN Scheme.
According to Umesh, the company's strategic investor has plans to pump in as much as 100 million Pounds (about Rs 950 crore) in the airline company operations over a period of five years. The TruStar plans to launch its operations in February-March next year with an initial fleet of 5 ATRs and 5 Airbus 320s. The company would also apply for Pan-India operations soon thereafter as the foreign partner would want to build a large Indian airliner over a period of time.

Umesh, currently holds 6-7 per cent stake in TruJet as the Hyderabad-based MIAL Group had subsequently got a controlling stake following the launch of the airlines in 2015.
16/12/19 B Dasarath Reddy/Business Standard
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