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Star Aviation take off in April, to fly tier-II cities
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karatecatman
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PostPosted: Thu Feb 05, 2009 2:09 pm    Post subject: Star Aviation take off in April, to fly tier-II cities Reply with quote

www.thehindubusinessline.com/2009/02/05/stories/2009020552230100.htm
Star Aviation to take off in April, cover tier-II cities in South

Taking to skies
To cover seven cities in first year.

$300 million investment in phases.

Tickets to be competitively priced.


K. Giriprakash
Ashwini Phadnis

Bangalore/New Delhi, Feb. 4

Chennai-based Star Aviation is to launch its operations in mid-April, providing air connectivity to tier-II cities mostly in south India.

The airline, promoted by Dubai-based real-estate company ETA Star, is to take to the skies at a time when the domestic airline sector recorded a decline in passenger traffic of close to 5 per cent during calendar year 2008. Star Aviation was recently given permission by the Ministry of Civil Aviation to import three Embraer 170 LR aircraft to begin operations.


During the first year, the airline plans to cover seven cities — Madurai, Visakhapatnam, Hyderabad, Ahmedabad, Bangalore, Kochi and Thiruvananthapuram — from its Chennai hub. By the third year of its operations, the airline plans to increase its reach to 50 cities across the country. Being a regional airline, Star Aviation will not be permitted to operate flights connecting the metros in north, east and western parts of the country.


A spokesperson said that the company will be investing over $300 million in phases in the airline, and will offer ‘same-day’ return flights to cities where air traffic is thin. The airline will be a full-service carrier with a single-class configuration. The tickets will be competitively priced, the spokesperson said, without getting into specifics.

The airline’s decision to start now is unlikely to affect its business plans, according to Mr Mark Martin, Senior Adviser, KPMG India. “Jet fuel prices are at a six-year low. Besides, the airline is bringing in new aircraft which will help it achieve break-even and thereby remain profitable even with relatively low average passenger occupancy,” Mr Martin pointed out.
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karatecatman
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PostPosted: Thu Feb 05, 2009 2:12 pm    Post subject: Reply with quote

Link:
www.flystaraviation.com/
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Kabir
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PostPosted: Thu Feb 05, 2009 4:50 pm    Post subject: Reply with quote

This is like a carbon copy of Paramount's model.
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Aiel
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PostPosted: Thu Feb 05, 2009 8:03 pm    Post subject: Reply with quote

Livery reminds me of Ethiopian, especially the tail section.
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Nimish
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PostPosted: Thu Feb 05, 2009 10:25 pm    Post subject: Reply with quote

Well - let's see if it's April this year or some April in the future!
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PostPosted: Fri Feb 06, 2009 12:02 pm    Post subject: Reply with quote

www.hindu.com/2009/02/06/stories/2009020658150200.htm
Star Aviation to commence operations

N. Anand
CHENNAI: The Civil Aviation Ministry has granted permission to Star Aviation to commence its operations between Chennai and secondary cities in Southern states and pan-Indian cities.

Promoted by Dubai based NRI Syed M. Salahuddin, Star Aviation Pvt Ltd (SAPL) will have Chennai as its base and will connect cities such as Madurai in Tamil Nadu, Hyderabad and Visakhapatnam in Andhra Pradesh, Thiruvananthapuram and Kochi in Kerala and Ahmedabad in two phases.

“We are the first private airline firm to get regional scheduled passenger airline status from the Civil Aviation Ministry and hence, we are not allowed to fly to major metros like Mumbai, New Delhi and Kolkata,” SAPL Chief Executive Officer T.V. Dorairaj told The Hindu.

SAPL has decided to acquire Brazil-made 10 Embraer 170 long range aircraft each costing $30 million.

The first two long range aircraft would be inducted by March/April and the third by May.

The 76-seater will have a single class configuration with two seats on either side.

The company has already recruited 100 employees for its operations.

Mr. Dorairaj said that Star Aviation would commence its maiden operation by flying to Madurai city during mid-April, followed by Hyderabad, Thiruvananthapuram and Ahmedabad in the following days.
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Boeing7xx
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PostPosted: Fri Feb 06, 2009 12:43 pm    Post subject: Reply with quote

Sorry but I just couldn't resist this :-

http://www.flystaraviation.com/ourfleet.php

The fuel system is designed to continuously provide fuel to the engines and Auxiliary Power Unit
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ameya
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PostPosted: Fri Feb 06, 2009 12:54 pm    Post subject: Reply with quote

Kabir wrote:
This is like a carbon copy of Paramount's model.


But paramount has what they call first class as well..

1 x 1 seating
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Kabir
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PostPosted: Fri Feb 06, 2009 1:00 pm    Post subject: Reply with quote

ameya wrote:
Kabir wrote:
This is like a carbon copy of Paramount's model.


But paramount has what they call first class as well..

1 x 1 seating


I meant in route mapping and operations.
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PostPosted: Mon Feb 09, 2009 12:29 pm    Post subject: Reply with quote

Boeing7xx wrote:
Sorry but I just couldn't resist this :-

http://www.flystaraviation.com/ourfleet.php

The fuel system is designed to continuously provide fuel to the engines and Auxiliary Power Unit



lol
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haree
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PostPosted: Mon Feb 09, 2009 12:52 pm    Post subject: Reply with quote

Any idea on the background of Mr.Dorairaj? Is he a part of the ETA group or was he someone in the aviation industry?
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iah87
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PostPosted: Mon Feb 09, 2009 7:57 pm    Post subject: Reply with quote

Add one more loss making airline, if it ever starts service.
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HAWK21M
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PostPosted: Mon Feb 09, 2009 10:36 pm    Post subject: Reply with quote

I wonder why the E170.
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nadarji
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PostPosted: Tue Feb 10, 2009 12:25 am    Post subject: Reply with quote

The E170 seems to be a good choice: It can do most domestic flights within India, also routes to SAARC countries, and has much less number of seats to fill than a 320.

The story of Kingfisher might have been different if they were flying just the E170s - no ATRs or Airbuses. Less seats to fill on the Metro routes might have lessened the number of seats sold at a discount, and faster flights might have meant more trips with the same number of aircraft/crew on their ATR routes.
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HAWK21M
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PostPosted: Tue Feb 10, 2009 1:15 pm    Post subject: Reply with quote

I felt CFM56-5 powered A318/319 would be more suited,consider trained manpower available + pooling options in the country in terms of spares.
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vikramv2
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PostPosted: Tue Feb 10, 2009 4:27 pm    Post subject: Reply with quote

The E170 is a regional jet and is classified under DGCA's guidelines to get lower tax on ATF. Its a cost advantage
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HAWK21M
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PostPosted: Tue Feb 10, 2009 8:13 pm    Post subject: Reply with quote

vikramv2 wrote:
The E170 is a regional jet and is classified under DGCA's guidelines to get lower tax on ATF. Its a cost advantage


True,But considering manpower/training/spares....will it offset the balance.
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PostPosted: Thu Mar 19, 2009 1:22 pm    Post subject: Reply with quote

A R Rahman to be new face of Star Aviation

Star Aviation, the Indian aviation wing of the Dubai-based conglomerate, ETA Star Holdings, is all set to sign up Oscar winner, A R Rahman as the brand ambassador for the soon-to-be-launched regional airline operations.
Star Aviation has already received the go ahead from the civil aviation ministry for operating its regional airlines service in the country. The airlines, which is scheduled to start its operations sometime next month, will initially operate brand new fleet of three Embraer 170 aircrafts.
“We are firming up our plans for the airlines and flight schedules. The launch of the service will happen in about a month’s time,” a senior Star Aviation official told Financial Chronicle.
“We have held discussions with Rahman. But, yet to sign a formal agreement with him,” he said, on A R Rahman becoming the Brand Ambassador for this fledgling airline. A formal agreement is likely to be signed over the next couple of days, it is learnt.
Star Aviation will be the first corporate to sign up A R Rahman as its brand ambassador, after he won the Oscars. He had earlier represented a few brands, including Airtel, in the past.
The designated regional airline will initially cover seven cities, mostly in south India, from its Chennai hub. These are Bangalore, Kochi, Thiruva-nanthapuram, Madurai, Hyderabad, Vishakapat-nam and Ahmedabad.
The ‘full service carrier’ will offer a ‘single class configuration’ of seats, as already being successfully done by Paramount Airways, based out of Madurai. And it is also adopting a similar approach by opting for a mix of leased and owned aircrafts.
While the initial focus is expected to be south, Star Aviation will eventually spread to other Indian cities as well. Though regional airlines are not permitted fly between two major metros across regions, Star Aviation will still be able to connect Chennai with Bangalore and Hyderabad, besides operating flights to most tier-II cities in the region.
The multi-billion Dubai-based ETA Star Holdings has interests which pans across industries including real estate, hospitality, automobile, power sector and shipping services.
The group’s Indian operations are headquartered in Chennai and it has already forayed into real estate, shipping, insurance and power sectors in India, besides restaurants.
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PostPosted: Thu Mar 19, 2009 1:47 pm    Post subject: Reply with quote

I never really figured this out.....how will a celebrity help revive fortunes of an airline.....Would be better to hire an aviation consultant.
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ajaind
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PostPosted: Thu Mar 19, 2009 7:30 pm    Post subject: Reply with quote

They really want to start with some firsts....Wi-Fi on board..etc..They are offering online check in right from the beginning. Usually other domestic airlines have done it after they have established in the market....The livery is very similar to ethopian...I hope it starts flying...
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PostPosted: Sat Mar 21, 2009 4:01 pm    Post subject: Reply with quote

Quote:
True,But considering manpower/training/spares....will it offset the balance.
regds
MEL



For one it is not exavtly new here, so training/spares issue is not as bad as for a completely new a/c and the manufacturer may also be more than willing to help out as Embraer is still establishing themselves.

Just my guess though!!!
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HAWK21M
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PostPosted: Sun Mar 22, 2009 6:48 am    Post subject: Reply with quote

TKMCE wrote:
Quote:
True,But considering manpower/training/spares....will it offset the balance.
regds
MEL



For one it is not exavtly new here, so training/spares issue is not as bad as for a completely new a/c and the manufacturer may also be more than willing to help out as Embraer is still establishing themselves.

Just my guess though!!!


Rajeev.New aircraft type will not reduce burden on Training/spares.Al;though Emb assisting out is a plus.
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TKMCE
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PostPosted: Sun Mar 22, 2009 9:13 am    Post subject: Reply with quote

Quote:
New aircraft type will not reduce burden on Training/spares.Al;though Emb assisting out is a plus.
regds


It does. my friend. Atleast it is safe to assume some spares inventory has already been built up considering that Embraer is around for a few years now. Same for training - no need to go half way accross the world.

By the way regarding Embraer helping out - it is just my guess !!! Do you have any confirmation???
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HAWK21M
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PostPosted: Mon Mar 23, 2009 12:30 pm    Post subject: Reply with quote

TKMCE wrote:
Quote:
New aircraft type will not reduce burden on Training/spares.Al;though Emb assisting out is a plus.
regds


It does. my friend. Atleast it is safe to assume some spares inventory has already been built up considering that Embraer is around for a few years now. Same for training - no need to go half way accross the world.

By the way regarding Embraer helping out - it is just my guess !!! Do you have any confirmation???


Not really. but.Paramount is struggling with their Stores Inventory.
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PostPosted: Tue Apr 21, 2009 11:40 am    Post subject: Reply with quote

Seems to be turning out to be another scam.
The booking engine is forever under construction.

And the pile of complaints from prospective employees is growing. Know quite a few who have applied and upset that there has been no response.

The office of this airline is also locked.
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PostPosted: Thu Aug 13, 2009 12:37 pm    Post subject: Reply with quote

ECONOMIC TIMES
Sun group plans to enter aviation business
13 Aug 2009
Hemamalini Venkatraman & Niranjana Ramesh
ET Bureau

CHENNAI: Sun Network, the Chennai-based entertainment group, owned by Kalanidhi Maran, is said to be gearing up to enter the aviation sector.
According to sources, the Rs 1,106-crore Sun group is in the process of firming up a joint venture with Star Aviation, an airline promoted by the diversified Dubai-based ETA Star group.

Less than 10 days ago, the two entities were understood to have held discussions for converting Star Aviation, floated by the Dubai group, into a 50:50 joint venture that could be named as ‘Sun Star’, sources privy to the deal told ET.

It is also learnt from an i-banking source that Sun Network has appointed Enam as the agency to advise on the transaction. Top sources in the ETA group also confirmed that Star Aviation has been evaluating various options to stabilise its operations. However, sources close to Sun Network promoters firmly denied any such JV move with Star.

The tie-up talk between Star and Sun comes on the back of Star Aviation’s rollout plans hitting a roadblock. Star Aviation intended to launch its commercial services as the country’s first-of-its-kind medium cost regional airline for South India early in 2009.

Star holds a regional licence to commercially operate only in the four southern states. While conceptually such airlines are not permitted to fly in busy routes, especially between metropolitan cities, Star has been permitted to operate between Chennai, Hyderabad and Bangalore.

Meanwhile, a couple of sources familiar with the development said Sun group could also consider joining the existing private airliner, Go Air, as a partner if the deal with Star does not materialise. On Wednesday, a senior official in Sun Network confirmed the group is foraying into the aviation business through the inorganic route as it is not the group's core business. However, he declined to go into further details.

"As far as we know, there have been no such talks. But, only Sun TV and Sun Pictures come under the direct purview of Sun Network," was the response of another senior official in the Network , when asked to comment on the latest buzz. "There is nothing to comment on the issue at this point", he said.

ET had earlier reported that Star Aviation had faced a stumbling block in its aircraft purchase deal with Embraer. The airline has not been able to arrive at a payment and delivery agreement with the manufacturer yet. A source in Star said the airline could pull through on its own, considering two members on board of the ETA group have taken special interest in the aviation arm. "They are serious about the business and have deep pockets. They have to take a call on whether they are going to play a more influential role in Star Aviation," the source further said.

It is also learnt that a number of aviation companies in the Middle East have evinced interest in Star Aviation, after its deal with Embraer started developing hitches. Its deal with Embraer for the acquisition of 7-10 short haul aircraft at $30 million per aircraft has run into trouble with the two parties not being able to come to an agreement on the financial terms.

So far, the deal has not gone through triggering speculation that the ETA might exit the venture. A source in the industry said "the company has no alternate strategy if its deal with Embraer falls through. If it doesn't get the Embraer E170 aircraft, the airline cannot take off." On the media group Sun's interest in the airline, Star Aviation spokesperson merely said, "there have been no talks between Sun and Star. No such decision has been arrived at."

Sun Network has a non-scheduled airline operator license registered under the name of Global Express. The group has its own hangar in the Chennai airport and operates flights for personal use. Two years ago, it obtained approval from its shareholders through postal ballot for operating commercial flights. For the ETA Star group, the aviation arm is its 17th vertical while Sun group has been focused on media and allied businesses.
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PostPosted: Thu Aug 13, 2009 3:10 pm    Post subject: Reply with quote

Sun TV denies move to enter aviation sector
India Infoline News Service
Mumbai Aug 13, 2009

The report stated that the company is in the process of firming up a joint venture with Star Aviation, an airline promoted by the diversified Dubai-based ETA Star group.


Sun TV Network Ltd. has categorically denied news reports about it planning to foray into the aviation business by entering into a partnership with Star Aviation, an airline promoted by the diversified Dubai-based ETA Star group.

The news item is totally false and frivolous, Sun TV said in a statement. The group has no such intention or interest or is in discussions in acquiring stake in Star Aviation, it added. The news is totally unfounded and baseless, Sun TV said.

Earlier, the financial newspaper had reported that the two companies held discussions for converting Star Aviation, floated by the Dubai group, into a 50:50 joint venture that could be named as ‘Sun Star’.

According to the pink paper, Sun TV has appointed Enam to advise on the transaction. It adds that the Sun TV group could also consider joining the existing private airliner, Go Air, as a partner if the deal with Star Aviation does not materialise.




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karatecatman
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PostPosted: Wed Sep 30, 2009 4:49 pm    Post subject: Reply with quote

Update

First aircraft is supposed in Brussels right now.

Star is getting into partnership with the Sun Group to run this airline, despite denaisl from both sides.

Aircraft may reach India by October-end, with flights starting in December.
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PostPosted: Mon Oct 26, 2009 11:49 am    Post subject: Reply with quote

www.business-standard.com/india/news/paramount-in-talks-to-buy-star-aviation/374290/
Paramount in talks to buy Star Aviation

Mihir Mishra
New Delhi
October 26, 2009

Wants to expand within the country and outside, while Star Aviation, yet to begin operations, has three aircraft ready


Chennai-based Paramount Airlines has sent feelers to a south-based regional carrier, Star Aviation, for a possible acquisition of the airline. Star Aviation got an operating licence in 2007, but has yet to start any flights.

“We are looking at acquisitions to expand and we are talking with Chennai-based Star Aviation,” said a senior executive of Paramount Airways.

Star Aviation Pvt Ltd, part of a Dubai-headquartered conglomerate, the ETA Star group, could not be spoken to for comments.

Paramount is the only airline in India to offer full business class service at prices comparable to the normal economy class fares of other airlines. It flies to 16 destinations in the country.

The airline, which started operations in October 2005, operates five planes — two Embraer 170 and three Embraer 175. Established by the Madurai-based textile company, the Paramount Group, it has ordered 10 A321-200 aircraft for short-haul international routes to be launched next year, when it completes the mandatory five year pre-requisite to fly abroad.

The source added that acquisition made sense for the airline, as Star Aviation has a fleet of three Embraer aircraft, which will add to Paramount’s existing strength.

There were reports that Paramount was buying GoAir, which has eight aircraft and 5.8 per cent market share, in a cash and equity deal, paying Rs 100-150 crore in cash and a stake of 7-8 per cent in the Paramount Group to the Wadias, who own GoAir. But GoAir has denied all such reports of talks.


!!! Supposed to be the other way around! Paramount itself at a stage where half its fleet may go.
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HAWK21M
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PostPosted: Tue Oct 27, 2009 3:37 pm    Post subject: Reply with quote

Interesting to peek into these amazing business plans of some airlines these days Smile
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PostPosted: Tue Oct 27, 2009 4:33 pm    Post subject: Reply with quote

Found these 2 photos of it on JetPhotos,
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PostPosted: Mon Nov 09, 2009 2:13 pm    Post subject: Reply with quote

ECONOMIC TIMES
Quikjet, Star take-off plans delayed

9 Nov 2009
Nirbhay Kumar
ET Bureau


NEW DELHI: The gloom in the domestic aviation sector has forced two start-up carriers to defer plans to begin scheduled services in the country,
underlining the apprehensions of excess capacity and unfavourable costs environment.

The Bangalore-based Quikjet and Star Aviation have asked the government for more time to launch their services, a senior government official told ET. Airlines are allowed to launch services after the government gives them no-objection certificates (NoCs), but operations have to start within the stipulated time or the permission lapses.

Quikjet had wanted to operate cargo operations. In a letter to the ministry of civil aviation, it has said the market condition is still not good to operate scheduled cargo operation. Through one of its subsidiaries, the Tata Group owns about 6% stake in Quikjet.

“Both the carriers have sought extended validity of NoC for six months beginning January next year,” the official added. While Quikjet returned its B737-200 it had imported to start operations, the ETA group-controlled Star Aviation is yet to get an aircraft to begin its scheduled operations.

Star is the first carrier to get necessary approval from the government to operate in the southern region following the civil aviation ministry’s move to create a separate category for scheduled air operations called ‘Regional Airlines’.

At least six aviation companies are waiting for demand to pick up before starting air transport services in the country. While passenger demand in the domestic market has increased, mainly due to low base last year and economy looking up, international traffic is yet to take off.

According to International Air Transport Association (IATA), the demand for international cargo slipped 5.4% in September this year compared to the corresponding month last year.

The increasing fuel price, which has nearly doubled to $80 per barrel in the past 10 months, may further complicate the industry’s problem.

Spiralling fuel price last year led to 25 carriers across the world folding up operations. The domestic airline industry is estimated to have lost Rs 10,000 crore in 2008-09 mainly on account of high fuel price, low yield, overcapacity and weak demand.
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PostPosted: Fri Nov 13, 2009 12:10 pm    Post subject: Reply with quote

karatecatman wrote:
Update

First aircraft is supposed in Brussels right now.

Star is getting into partnership with the Sun Group to run this airline, despite denials from both sides.

Aircraft may reach India by October-end, with flights starting in December.



ECONOMIC TIMES
Kalanithi Maran to buy fledgling airline

13 Nov 2009
Sai Deepika Amirapu & Chandra Ranganathan
ET Now

Billionaire media baron Kalanithi Maran is close to sealing a deal to acquire Star Aviation for over Rs 1,000 crore, launching himself into a
struggling industry by buying an airline that is yet to start operations.

Mr Maran, who runs the Sun Network with interests in television, radio and newspapers, is buying the regional carrier in his personal capacity, persons close to the development said. Other terms of the deal and how it will be funded are not known.

Top executives of Star Aviation and Sun Network maintained that no such deal has been finalised. Mr Maran, the son of late Union minister Murasoli Maran and the grand nephew of Tamil Nadu chief minister M Karunanidhi, could not be reached. The 43-year-old is ranked 601 in the Forbes’ list of billionaires, with a net worth of $1.2 billion.

Star Aviation is owned by a Dubai-based NRI, Syed Mohammad, who owns a business empire estimated to be worth $3.8 billion, including an aircraft leasing company. Star Aviation’s imminent sale comes in the backdrop of its delayed launch because of a challenging economic environment. The airline industry has been especially hard hit and trade group IATA estimates that Indian carriers will post a combined loss of $1.5 billion (Rs 7,500 crore) in 2009.

Star Aviation, which was scheduled to launch its services early this year, now plans to do so in January or February 2010, a company official said on condition of anonymity. The airline has placed orders for seven E170 aircraft from Brazil’s and two have been delivered so far, he added.

Kapil Kaul of the Centre for Asia Pacific Aviation said that if the deal materialises, it is “very good news for Star Aviation’s promoters.”

“The Maran family have access to huge resources and sustaining power; they can bring capital to fully fund the project. But most important is having a professional management as well the choice of aircraft,” he observed.

Star Aviation, the first carrier to get an approval to operate a regional airline in the southern part of the country, has asked the government for time up to June 2010 to launch its services after missing a previous deadline. “As the first airline, Star will have the first mover advantage and it could also benefit of operating from the less crowded airports in the South. The entry of regional carriers will also enhance connectivity to the underserved Tier II and Tier III cities,” said an aviation analyst on condition of anonymity.

Sun Network, which owns the Sun TV channel, Suryan FM radio stations and the Dinakaran daily, has a licence as non-scheduled airline operator for chartered flights and air taxi services under the name Global Express. Two years ago, the company won shareholder approval to operate commercial flights.

It is also learnt that a company by the name “Sun Aviation” has been incorporated with the Registrar of Companies in Chennai, with Mr Maran as the founder.

ET had reported in August that Star Aviation and Sun Network were in talks for 50:50 joint venture, but both companies denied the development. In recent weeks, Star Aviation has again been in the news, with Mr Maran and Paramount Airways seen as the likely buyers.
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PostPosted: Fri Jan 29, 2010 1:46 pm    Post subject: Reply with quote

The corporate jet of the Sun Group (Marans) has of late been flying to Dubai quite a lot. Buzz is that something is expected on Star.

Star's corporate office phone is never answered.
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PostPosted: Wed Feb 03, 2010 12:58 pm    Post subject: Reply with quote

karatecatman wrote:
The corporate jet of the Sun Group (Marans) has of late been flying to Dubai quite a lot. Buzz is that something is expected on Star.

Star's corporate office phone is never answered.

Heard that Sun has opted out of the deal. Can any one conform this?
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HAWK21M
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PostPosted: Thu Feb 04, 2010 12:45 am    Post subject: Reply with quote

embpilot wrote:
karatecatman wrote:
The corporate jet of the Sun Group (Marans) has of late been flying to Dubai quite a lot. Buzz is that something is expected on Star.

Star's corporate office phone is never answered.

Heard that Sun has opted out of the deal. Can any one conform this?


Heard the same too.
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PostPosted: Sun Feb 07, 2010 5:31 pm    Post subject: Reply with quote

again a classic case ..first pressrelease without ground work and then closer ..
no one frpm press also checks ground relaity befor printing news ...

star has given notice to all employee for 45 days closer
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PostPosted: Mon Feb 08, 2010 2:21 pm    Post subject: Reply with quote

Another one bites the dust.....Ground work is very important before commencing an airline.

Bob.....heard similar news about Quikjet ops & security staff getting letters......any details.
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PostPosted: Fri Feb 19, 2010 1:47 pm    Post subject: Reply with quote

www.dnaindia.com/money/report_kalanithi-maran-eyes-spicejet-pie_1349674
Kalanithi Maran eyes SpiceJet pie

Praveena Sharma
DNA
Friday, February 19, 2010

Bangalore: Budget airline SpiceJet Ltd, which is scouting for investors to raise $50-75 million for expansion, is in talks with media baron Kalanithi Maran to offload stake, two persons familiar with the development said.

Company sources who did not want to be named said the promoter of Sun Network, South India’s biggest broadcaster, is considering investing close to $100 million in the New Delhi-based airline.

Edelweiss Capital is advising Maran on the deal, sources said.
“The talks (between SpiceJet and Maran) began last week. Kalanithi is looking at picking up stake in the airline and may buy the stake sold by Istithmar to mutual funds and financial institutions. Another option being looked at is the issue of fresh equity. The contours of the deal have not yet been finalised,” said one of the source.

In the first week of February, the beleaguered Dubai government’s private equity arm Istithmar sold off its 13.4% stake in SpiceJet.
Sanjay Aggarwal, chief executive officer of SpiceJet, could not be contacted for a comment.

But the airline’s spokesperson said; “We do not comment on speculations and rumours.”

Maran has been eyeing the aviation space for some time now. Few months back, there were speculations the company was looking at acquiring the yet-to-be-launched Star Aviation, which is promoted by Dubai-based real estate ETA Star Group. However, deal did not take off and Star Aviation has yet to launch its operation.

S Natrajhen, chief financial officer of Sun TV Network Ltd denied that his company was looking at picking up stake in the low cost airline.

“There is no truth in it. There is nothing concrete happening. At least, I am not aware of it,” he told DNA Money.

A senior executive of a airline said since SpiceJet is in the market to raise funds, they may have approached Maran, who is keen on entering the aviation sector.

“Maran did look at Star Aviation but for some reason the deal did not materialise. SpiceJet is a company owned by investors; its promoters (London-based Kansagras) do not have major stake and so it’s very easy to pick up stake in it,” he said.
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PostPosted: Sat Feb 20, 2010 1:32 am    Post subject: Reply with quote

The two E-170s have not been taken up by Star and are now being taken up by Petro Air of Libya.
So much for this startup !
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