Kalanithi Maran may buy out regional carrier Star Aviation

Billionaire media baron from the southern Indian state of Tamil Nadu, Kalanithi Maran, may be close to acquiring Star Aviation for over Rs1,000 crore, according to unconfirmed media reports. Star Aviation is owned by a Dubai-based billionaire non-resident Indian, Syed Mohammad, who amongst other businesses also owns an aircraft leasing company.

Maran runs the Sun TV Network and has interests in radio and newspapers.

Star Aviation was slated to launch services early this year, but now plans to do so only in January or February 2010, company sources indicated. The airline has seven E-170 Embraer aircraft on order, of which two, apparently, have been delivered.

Kalanithi Maran is the son of late Union minister Murasoli Maran and also the grand nephew of Tamil Nadu chief minister M Karunanidhi. He is ranked 601 in the Forbes' list of billionaires with a net worth of $1.2 billion.

Unnamed executives of Star Aviation and Sun Network were quoted as saying that no such deal has been finalised.

Star Aviation was the first company to receive approval to operate a regional airline in the southern part of the country. It has already missed one deadline to commence operations and has apparently requested authorities for time up to June 2010 to launch services.

Maran's Sun Network holds a licence as a non-scheduled airline operator for chartered flights and air taxi services under the name Global Express. It has secured shareholder approval to operate commercial flights.

Maran's businesses include the Sun TV channel, Suryan FM radio stations and the Dinakaran daily.