Will Anil Ambani pick up stake in Air Deccan?

19 May, 2007: Look who’s planning a Deccan flight. Rumours has it hat ADAG boss Anil Ambani could pick up stake in the low cost Air Deccan.

Reports quoting sources said that Air Deccan chief Capt. Gopinath has held talks with ADAG. The reports added that the Captain was also in talks with a couple of private equity firms and overseas corporate investors.

The largest budget airline company in the Indian market is mulling over options to raise US$100 million by selling up to 26 percent of the company. The airline is currently scouting for a professional investor to sell this stake in the company. Reports added that Deccan has appointed investment bank Edelweiss Capital to evaluate at least three potential private investors. Air Deccan would be using these funds to fund expansion as they aim to expand their services across the country, they said.

Meanwhile, analysts are busy speculating that the Air Deccan chief Capt Gopinath could well be opening talks with Kingfisher Airlines chairman Vijay Mallya. The Kingfisher boss is on a high already with the deal with Scottish whisky maker Whyte & Mackay.

However, sources preferred saying that the news may not be right. Gopinath has publicly ruled out any strategic sale to Vijay Mallya’s Kingfisher Airlines.