Deccan Aviations Sri Lanka JV launch delayed following violence

Mumbai, Aug 30 | Updated: Aug 31 2006, 05:30am hrs
The Sri Lankan joint venture of Indias Deccan Aviation Ltd will delay the launch of scheduled operations following a rise in violence in the island country, a top official of the parent company said.

Deccan Lanka Pvt Ltd, 52% owned by the Indian company, had initially hoped to launch the services in October, but that would not be possible now, GR Gopinath, Deccan Aviations managing director, said on Wednesday.

We are reviewing it and are waiting for the violence to subside, he said. The scheduled October launch will not happen.

Deccan Aviation, which runs budget carrier Air Deccan, pins hopes on the Sri Lankan venture to start flying international routes as India allows only five-year old airlines on such routes. Air Deccan started scheduled operations in August 2003.

The airline official had said Deccan Lanka could tap some of the aircraft scheduled to join the Indian firms fleet to start operations. Overseas destinations would be Deccan Lankas focus.

Spirits maker UB Group, which runs Kingfisher Airlines, has floated Kingfisher Airline Inc in the US for a Deccan Aviation, which has a fleet of 14 Airbus, A- 320 jets and 21 ATR turbo-prop planes, has placed orders for nearly 100 more to be delivered over the next 90 months. similar purpose.

Shares in Deccan Aviation, which listed in the BSE in June, closed 1.5% down at Rs 84.55 in a flat Mumbai market.

Reuters