Air Deccan stake sale soon
By Our Economy Bureau | 11 Dec 2004
Hyderabad: Air Deccan will launch its first phase of equity divestment within the next week to 10 days, according to the company's managing director, Captain GR Gopinath. He said the airline would be divesting 26 per cent of its equity and hopes to raise $40 to $60 million through the sale that would be used for adding more aircraft to the company's fleet, through outright purchase or lease.
Air Deccan is buying two new Airbus planes in February 2005. It took delivery of two ATRs recently, while three more are being added this month. Once these ATRs are put in operation, Delhi would be connected to cities like Amritsar, Dehradun, Agra, Kanpur and Jalandhar, while Kolkata would be connected to Bhubaneswar, Coochbehar, Jamshedpur and Bagdogra. Gopinath said, "At present the airline is doing about 75 flights a day. It intends to add 100 flights a day each year." Air Deccan is expecting revenues of $90 million in 2004-05 and is hoping to report a profit.
Gopinath revealed that Air Deccan had received seven bids for its equity divestment offer, six international and one domestic. He said the airline had discontinued talks with Richard Branson of Virgin Atlantic, as the government had not spelt out its stand clearly on FDI in airlines. Virgin Atlantic was said to be keen on picking up a 49 per cent stake in the company. Gopinath said Air Deccan would come out with an IPO within five years of the stake sale, and private equity partners would get an exit option.
Latest articles
Featured articles
The remarkable Ratan Tata
By Kiron Kasbekar | 23 Oct 2024
One newspaper report of Ratan Tata’s passing away showed an old photo of him climbing into the cockpit of a Lockheed Martin F-16 fighter.
Lighter than air, yet very, very powerful
By Kiron Kasbekar | 03 Jan 2024
In March 2013 Chinese scientists pulled off a remarkable feat. They created the world’s lightest aerogel. Tipping the scales at a mere 0.16 milligrams per cubic centimeter – that’s a sixth of the weight of air!
COP28 explained: A closer look at COP28's climate change solutions
By Aniket Gupta | 27 Dec 2023
The 28th United Nations Climate Change Conference, also known as COP28, took place from 30th November 2023, to 13th December 2023, at Expo City in Dubai, United Arab Emirates.
What is a Ponzi scheme?
By Aniket Gupta | 06 Dec 2023
Ponzi schemes have long captivated the public imagination, drawing unsuspecting investors into a web of illusion and deception.
The Rise and Rise of HDFC Bank
03 Jul 2023
HDFC, which surged ahead of global majors like HSBC Holdings Plc and Citigroup Inc and left Indian peers like State Bank of India and ICICI Bank in market capitalisation, now ranks fourth largest among the world’s most valuable banks, after JPMorgan Chase & Co, Industrial and Commercial Bank of China Ltd and Bank of America Corp
India’s Millet Revolution To Enrich Global Food Basket
02 Apr 2023
Millets, a healthier and cheaper substitute to wheat and rice, are indigenous to many parts of the world, especially in the semiarid tropics of Asia and Africa, and offers a big scope for expanding production and consumption in the foodgrain deficient African continent
Market predator Hindenburg preys on Adani stock
06 Mar 2023
Almost a month after the damning report of short-seller Hindenburg Research on the Adani Group that claimed that the seven stocks within the group were about 85 per cent overvalued, one of the group's stocks, Adani Total Gas, closed at Rs835 on the BSE, down nearly 79 per cent from its 24 January level, almost close to reaching that valuation