First Flight, one of the leading Indian express companies, could be set to sell a 20% stake to aforeign investor to finance plans for two B737 freighters to double its air express capacity,
according to media reports.The privately-owned company is looking at adding two B737 freighters to the three ATPturboprop freighters that it put into service last autumn, the DNA newspaper reported. This woulddouble daily uplift from 24 tonnes to about 56 tonnes.
First Flight plans to use the larger B737 freighters on trunk routes between Mumbai, Delhiand Chennai, and switch the smaller ATPs to smaller routes with lower demand. The flights couldalso act as domestic feeders for international airlines operating to India.
Meanwhile, the Business Standard reported that First Flight is in talks with two foreignprivate equity houses to sell a 20% shareholding for about Rs 1 billion (EUR 18 million). This Rs 1billion would be used for the two aircraft and to expand its currently small logisticsbusiness.
The deal could be finalised within the next few weeks, the newspaper said, and an IPO couldtake place in the next two years. There has been speculation that Singapore-based Temasek Holdingsis a potential investor.
First Flight, with turnover of Rs. 2.9 billion (EUR 52.8 million), aims to increase revenuesby 30% in the current April 2007 – March 2008 fiscal year. In 2006/07, it increased volumes by 10%to 85 million shipments.
The company’s deputy managing director R.K. Saboo told CEP-Research in an interview lastOctober that the company was interested in acquisitions to fuel its ambitious growth strategy butwas also open to a ‘strategic alliance’ with an international partner.
