Published on Thu, Oct 05, 2006 at 10:48 | Source : Moneycontrol.com
Updated at Thu, Oct 05, 2006 at 11:00
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City Airlines to wing out in mid-2007
A Mumbai-based car rental service operator and vehicle asset management company, City Group is planning to scale up operations by expanding its cab fleet and introducing a non-scheduled commercial airliner. The group is planning to come out with an IPO of Rs 200 million for fleet expansion in November 2006.
A Mumbai-based car rental service operator and vehicle asset management company, City Group is planning to scale up operations by expanding its cab fleet and introducing a non-scheduled commercial airliner, reports The Hindu Business Line.
The airline styled `City Airlines` is expected to wing out in mid-2007 and will cater to corporates and pilgrims apart from moving high value cargo. The group is planning to come out with an IPO of Rs 200 million for fleet expansion in November 2006. A follow-on offering of Rs 1000 million would be floated in mid -2007 to fund the `City Airlines` project.
City Group`s managing director, SM Masood said the company plans to start its air operations on a low key, concentrating on feeder routes and a select string of corporates. We are awaiting government approvals, he said.
The group has already bought a B-200 Beachcraft (generally 10, 12 and 15-seaters) and plans to land 10 such aircrafts.
The airliner will be focussing on corporate movement, hi-value cargo such as diamonds and physical transfer of money, and pilgrimage travel. During the initial stages of pilgrimage travel, the group will be conducting charter services to Tirupati and Shirdi, and subsequently to other destinations as well, he said.
The group`s flagship company, City Limouzines India plans to ramp up its cab fleet from 47,000 from its existing 24,000 cabs. The group will also widen its presence in major metros and tier I and tier II cities.
