February 14, 2007: Bangalore-based Deccan Aviation is plans to turn its helicopter business into a separate company. According to reports the company is mulling over making it a separate firm and raise money to expand its opertions.

The company is reportedly planning to sell a stake to private investors in the proposed helicopter company and later consider an initial public offering.

With demand for air travel in India growing around 25 per cent annually, airline companies like Kingfisher and some others too are mulling over starting helicopter services. It has also been reported that Goldman Sachs Group and BNP Paribas are among those investing in Indian airlines as demand for air travel rises. Kingfisher Airlines is starting a helicopter tourism service.

Experts too are of the opinion that helicopters will soon be a big business in India. On the Deccan plans, analysts said that if the company can split it into a separate unit and raise money for expansion, it's going to be a very good deal.

Helicopter companies such as Global Vectra Helicorp are selling shares through IPOs in their bid to expand. The wealth creation in the country will further increase the demand for helicopter services, it is believed.

Deccan Aviation currently owns nine helicopters and two propeller planes catering to oil companies, tourism, and flying devotees to hill shrines. The proposed new unit will acquire more helicopters and business jets to cater to the increased demand.

Meanwhile, Kingfisher Airlines is in talks with three companies to buy six craft for its new helicopter unit. The company plans to start a helicopter charter service for companies and also offer services to business- class passengers of its airline.