Colombo: In a ground breaking agreement, Indian LCC, and helicopter operator, Deccan Aviation (Lanka) and the JS Group of Pakistan have announced their intention to enter into a commercial partnership in the Sri Lanka aviation industry. Through the agreement, JS Air and Deccan Aviation will begin operating a state-of-the-art Raytheon Beechcraft fixed wing aircraft for domestic services in Sri Lanka shortly.

The two sides also said that eventually the aircraft would be offered to corporate clients for travel to India and regional destinations.

Company officials, in the presence of the chairman of JS Air, Munawar Siddiqui and Pakistani High Commissioner to Sri Lanka, Shahzad Chaudhary, signed the agreement. It has been given to understand that the venture has received clearance form the Sri Lankan ministry of defence.

Offered in a 17-seat, cargo or VIP configuration, the US manufactured twin-engine aircraft model 1900C is capable of flying non-stop to Maldives or India. The aircraft is also uniquely positioned, in that it would be able to use virtually all of Sri Lanka's airfields.

With the induction of the $3 million Beechcraft, Deccan Aviation also becomes the only company to offer both helicopters and fixed wing options to customers.

According to plans, the new alliance will offer a 'flying bus' service to inbound tour operators at competitive rates from the international airport, and also for the first time, offer local corporate flyers a concept that the West has long been accustomed to - a deluxe private aircraft for corporate, domestic or international charters.

The venture has also announced that plans for the second quarter of the year include the introduction of a 'corporate jet card,' a concept that is very popular with corporate flyers in the US and Europe, and now in India. The card is loaded with 'bulk flying hours' and offers a choice of aircraft, depending on the customers need.

Deccan has also announced plans to launch a service to co-ordinate ground handling arrangements for the increasing number of private aircraft visiting Sri Lanka, and whose owners tend to use Deccan's services to travel internally.

A company statement released after the signing quoted Deccan Aviation CEO Suren Mirchandani : "Deccan Aviation and our shareholders are very pleased about the new partnership we have forged with JS Air of Pakistan. Our chairman, Capt Gopinath, and the chairman of JS Air together with our investment partners are fully committed to the long-term development of civil aviation in Sri Lanka.

With this alliance, our company begins its third year of operations, offering an integrated service to our clients - with point-to-point travel options by helicopters, and airport-to-airport options using the Beechcraft."

The $700 million JS Group is among the corporate heavyweights in Pakistan, with quoted and unquoted group companies playing a leading role in virtually every sector of the fast growing Pakistan economy. JS Group's core is JS Financial, which operates market-leading companies in asset management, investment banking, capital raising and brokerage, banking, insurance and trade finance.

The group has five vertical businesses: JS Industrial, JS Infocom, JS Property, JS Resources and JS Transportation.

The JS Group also holds substantial equity in AirBlue, a domestic carrier operating an all Airbus fleet in Pakistan.

Industry observers point out that, cross investment by Indian and Pakistani companies in their aviation, or any other sector, would not be possible. However, a neutral regional economic hub, like Sri Lanka, is making such business cooperation possible.

Deccan Aviation Lanka is the country's only helicopter operator and operates Bell Jet Ranger rotorcraft to ferry corporate executives, VIPs and tourists all over the country. It also provides a portfolio of specialized services ranging from aerial filming and survey applications for engineering to infrastructure applications.