Times group buys stake in Air Deccan

Bennett, Coleman and Company has acquired 1.42 per cent in the country's first low-cost carrier Air Deccan.
According to the company's draft red herring document filed with the Securities and Exchange Board of India, the stake is valued between Rs 15.70 crore and Rs 18.31 crore based on the offer price band of Rs 150 to Rs 175 per equity share.
This deal, according to the company official, was done just before it filed the draft prospectus with the market regulator. Air Deccan today said it plans to add 96 aircraft to its fleet by 2013.
Devesh Desai, the airline's finance controller said the company has not yet decided on the financing of the aircraft orders. "We will decide whether we will have to go in for funding through debt or equity depending on the situation at that time," Desai said.
At present, the low-cost carrier has a fleet of 29 aircraft. It plans to add 19 aircraft in the next year, of which eight will be leased Airbus A320s, four ATR 72-500s on hire purchase and one of the same to be leased. It will also lease one ATR 42-500 aircraft.
13/05/06 Rediff

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