Deccan Aviation hopes to come out of red in one-and-a-half years

Mumbai: Deccan Aviation, which reported a topline of about Rs 500 crore for the first eight months ended November 2005, and net loss of about Rs 121 crore during the same period, hopes to come out of the red in another one-and-a-half years, chief financial officer Mohan Kumar said.
Deccan Aviation is coming out with an initial public offering (IPO), which will open on May 18, and close on May 22. The company is offering 25.4 million fresh shares, comprising 25% of the post issue capital, of face value Rs 10 each at a price band of Rs 150-175, raising between Rs 380 and Rs 444 crore.
Currently the airline has a fleet of 30 aircraft and operates over 250 flights a day. “It takes a year for a particular flight to become profitable. Of the 250 flights, only about 60 are profitable. As more and more flights mature, our cash burn would reduce,” Kumar said.
08/05/06 Rabin Ghosh/Daily News & Analysis

To Read the News in full at Source, Click the Headline