Air Deccan to break even by `08

Mumbai: Deccan Aviation, the operator of the low-cost carrier Air Deccan, is expected to break even in next two years.
“The airline will become profitable with in 18 to 24 months with the help of better yield management,” a senior company executive said.
He said that the company’s expenses are 50 per cent lower in terms of cost compared to full service airlines. “Air Deccan has better aircraft utilisation and is offering more seats. As of March 31, the airline has orders in place for future delivery of 96 aircraft which are scheduled to be delivered up to December 2012,” he said.
The airline will hit the capital market with its inital public offer (IPO) of 2.45 crore equity shares on May 18 through the book building process. The issue closes on May 23 and the price band has been fixed at Rs 150 to Rs 175.
The company proposes to raise Rs 368.19 crore at the lower end of the price band and Rs 429.55 crore at the higher end of the price band.
12/05/06 Business Standard

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