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Bangalore, December, 14,2004

India's only low-cost carrier, Bangalore-based Air-Deccan, is believed to have closed a private equity deal with a consortium that includes ICICI Venture, the private equity arm of the ICICI group. Private equity investors are said to have bought a 26 percent stake in the airline.

The ICICI Venture-led consortium also includes Capital International, the US-based asset management company, sources said. The airline will raise $40-50m from the sell-off. Eight global firms had submitted non-binding offers for the stake, of which three were shortlisted and given access to the data room. GIC and Singapore-based Temasek were also interested at one stage. The new FDI norms permit up to 49 percent foreign investment in local airlines, as long as they are non-airline. Such proposals for the domestic carriers need not go through the Foreign Investment Promotion Board (FIPB). Air-Deccan is now trying to raise about $400m by way of debt to fund its expansion over the next five years. "It plans to induct 21 Airbus A 320s and 27 ATR aircraft over the period," managing director GR Gopinath said on Monday.

A team of top Air-Deccan officials with financial advisors NM Rothschild are leaving for Paris tonight to negotiate with export credit agencies like Coface, EGDC and Hermes as well as banks. Aircraft acquisitions are typically funded to the extent of 85 percent by export credit agencies, as per OECD norms.

As founder-promoter, Gopinath holds 26 percent in Air-Deccan, Brindavan Beverages holds 20 percent, a non-resident Indian firm 20 percent, a Japanese investor 20 percent and other promoters and high net worth individuals hold the balance 14 percent in the airline. With an authorised capital of Rs 100 crore, the company has a paid-up equity of Rs 30 crore.

AIR DECCAN is a unit of Deccan Aviation Private Limited, India's largest private heli-charter company. Formed in 1995, Deccan Aviation Private Limited has carved a niche for itself in the Indian aviation scene with its reputation for providing speedy and reliable heli-services for company charters, tourism, medical evacuation, off-shore logistics and a host of other services.

Our Managing Director is Captain G R Gopinath. He is a graduate of the National Defence Academy and has served in the Indian Army. A recipient of the prestigious ROLEX Award for Ecological site farming and the WIPRO PRSI Award, he is the driving force behind the organization.

Captain KJ Samuel is the Executive Director and, along with Capt Gopinath, is a founder Director. An experienced Army Aviation pilot, he is a Presidential Gallantry Award winner and still actively flies for the parent company.

Mr S N Ladhani, Chairman of the Ladhani Group of Companies (India's largest Coke Bottler) is on the Board. Another illustrious member of the Board of Directors is Mr Vijay Amritraj, India's best known Tennis star.

The company has a modern fleet of ATR-42-320 aircraft, one of the finest and most efficient Turbo-Prop aircraft flying. ATR is a European joint venture between Alenia Aeronautica and EADS. The ATR 42 has become a reference aircraft amongst airlines around the world, by offering a safe, easy to maintain and comfortable aircraft operating on the regional market with the best economics on short haul sectors. To date, ATR has sold over 650 aircraft to more than 100 operators in 73 countries all around the world.

Our company has adopted a 'lean-and-mean' approach to staffing and aims at maintaining a low aircraft-to-employee ratio. We have some of the most experienced administrators, aircrew and engineers on our rolls. A good work culture coupled with a skilled workforce is the backbone of the company.


	ICICI Venture buys stake in Air Deccan A non-resident Indian firm 20 percent Bangalore, December, 14,2004 India's only low-cost carrier, Bangalore-based Air-Deccan, is believed to have closed a private equity deal with a consortium that includes ICICI Venture, the private equity arm of the ICICI group. Private equity investors are said to have bought a 26 percent stake in the airline. The ICICI Venture-led consortium also includes Capital International, the US-based asset management company, sources said. The airline will raise $40-50m from the sell-off. Eight global firms had submitted non-binding offers for the stake, of which three were shortlisted and given access to the data room. GIC and Singapore-based Temasek were also interested at one stage. The new FDI norms permit up to 49 percent foreign investment in local airlines, as long as they are non-airline. Such proposals for the domestic carriers need not go through the Foreign Investment Promotion Board (FIPB). Air-Deccan is now trying to raise about $400m by way of debt to fund its expansion over the next five years. "It plans to induct 21 Airbus A 320s and 27 ATR aircraft over the period," managing director GR Gopinath said on Monday. A team of top Air-Deccan officials with financial advisors NM Rothschild are leaving for Paris tonight to negotiate with export credit agencies like Coface, EGDC and Hermes as well as banks. Aircraft acquisitions are typically funded to the extent of 85 percent by export credit agencies, as per OECD norms. As founder-promoter, Gopinath holds 26 percent in Air-Deccan, Brindavan Beverages holds 20 percent, a non-resident Indian firm 20 percent, a Japanese investor 20 percent and other promoters and high net worth individuals hold the balance 14 percent in the airline. With an authorised capital of Rs 100 crore, the company has a paid-up equity of Rs 30 crore. AIR DECCAN is a unit of Deccan Aviation Private Limited, India's largest private heli-charter company. Formed in 1995, Deccan Aviation Private Limited has carved a niche for itself in the Indian aviation scene with its reputation for providing speedy and reliable heli-services for company charters, tourism, medical evacuation, off-shore logistics and a host of other services. Our Managing Director is Captain G R Gopinath. He is a graduate of the National Defence Academy and has served in the Indian Army. A recipient of the prestigious ROLEX Award for Ecological site farming and the WIPRO PRSI Award, he is the driving force behind the organization. Captain KJ Samuel is the Executive Director and, along with Capt Gopinath, is a founder Director. An experienced Army Aviation pilot, he is a Presidential Gallantry Award winner and still actively flies for the parent company. Mr S N Ladhani, Chairman of the Ladhani Group of Companies (India's largest Coke Bottler) is on the Board. Another illustrious member of the Board of Directors is Mr Vijay Amritraj, India's best known Tennis star. The company has a modern fleet of ATR-42-320 aircraft, one of the finest and most efficient Turbo-Prop aircraft flying. ATR is a European joint venture between Alenia Aeronautica and EADS. The ATR 42 has become a reference aircraft amongst airlines around the world, by offering a safe, easy to maintain and comfortable aircraft operating on the regional market with the best economics on short haul sectors. To date, ATR has sold over 650 aircraft to more than 100 operators in 73 countries all around the world. Our company has adopted a 'lean-and-mean' approach to staffing and aims at maintaining a low aircraft-to-employee ratio. We have some of the most experienced administrators, aircrew and engineers on our rolls. A good work culture coupled with a skilled workforce is the backbone of the company.