Deccan Aviation bid to mop up $75 m

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Bangalore Feb. 2

Deccan Aviation , which runs Air Deccan, is planning to shed up to 15 per cent stake to mop up another $75 million for funding new aircraft purchase.

During the current calendar year, the airline is expected to have cash of around $95 million, apart from the $75 million it plans to get from new investors. This is expected to be utilised over the next two years.

In another development, the company's Chief Financial Officer, Mr Mohan Kumar, who took Deccan Aviation through an IPO and was the architect of some of the industry's innovative financial deals, has put in his papers. He will be replaced by Mr Ramki Sundaram, who was with Investec Bank, a UK-based bank, which has around 2 per cent stake in Deccan Aviation. Last year, the airline signed a financial structuring deal with Investec Bank as well as Germany based HSH Nord Bank AG to raise $100 million.

Cargo foray

Mr Mohan Kumar will continue to be associated with Deccan Aviation as an advisor. The airline is also drawing up a plan to start its cargo service. Mr Mohan Kumar is expected to assist in developing a new model for the cargo foray of the airline.

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