Deccan Aviation to turn helicopter business into separate entity

Bangalore: India's pioneering low-cost airline, Deccan Aviation, and currently its biggest passenger carrier, plans to turn its helicopter business into a separate company. The company's managing director, G.R. Gopinath, also said that Deccan would raise money to expand its services.

According to Gopinath, the Bangalore-based company will sell a stake to private investors in the proposed helicopter company and also consider an initial public offering at a later stage.

The announcement from Deccan comes even as the Indian aviation sector is logging an annual growth of 25 per cent. The growth comes on the back of annual GDP growth of 9 per cent, which has led to increasing demand from oil companies and corporations for helicopters. Deccan's announcement follows those of other companies, such as Kingfisher and Global Vectra Helicorp for expanded helicopter services.

Currently, Deccan Aviation operates nine helicopters and two propeller planes that cater to oil companies, tourism, and pilgrimage related services. According to Gopinath, the proposed new unit will acquire more helicopters and business jets to cater to the increased demand. He also said that the company has already ordered two business jets.

Gopinath also mentioned that the helicopter business had always been profitable, with $17 million of annual revenue.