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Deccan Aviation’s charter division to be listed separately
Deccan Aviation’s plans for hiving off its charter division into a separate company has not been affected by the Kingfisher Airlines picking up a 46% stake in the company, reports Business Line. Deccan Aviation had announced to the stock market in April 2007 about its intention to put the charter services into a separate company.
Just as for domestic routes, Deccan will position itself as a low-cost airline on international operations too. Other officials of the airline expect positive spin-offs from the imminent termination of the management agreement of SriLankan Airlines and the Dubai-based Emirates.
Sources point out that all is not well with the agreement, which comes up for revision in March. Emirates, it is said, is miffed over the Sri Lankan Government introducing competition in the form of a low-cost airline, Mihin Air. Emirates has a 43.5 per cent stake in SriLankan.
In 2006-07, SriLankan carried 1.1 million passengers into and out of India and a portion of them were those who travelled on the airline between West Asia and India, via Colombo. If the agreement between SriLankan and Emirates is not extended, this market would become available to Indian carriers, sources noted.
