New market to serve corporate clients:

Deccan Aviation Lanka to invest $1m on new aircraft

Deccan Aviation Lanka will invest one million US Dollars on a new aircraft to transport domestic travellers, corporate clients and foreign tourists, Managing Director, Deccan Aviation Lanka, Suren Mirchandani told Daily News Business.

He said that the new aircraft is due in Sri Lanka by the end of this year with all related infrastructure.

It will be the lowest in the company’s price list meeting the Government’s requirement for a low cost domestic air transport operation.

He hoped that it will be a very critical component for the industry as it is looking beyond other destinations apart from Jaffna.

The other destinations are Koggala, Nilaveli, Hingurakgoda and Weerawila. Mirchandani said that there has been a rapid improvement in the aviation industry with the end of war and it would have a bright future.

He said that Deccan Aviation Lanka started five years ago to cater to tourists but this did not materialize as a result of the war and the industry faced huge challenges.

However, a new market has now emerged to serve corporate clients. Earlier, it catered to local companies transporting investors to visit sites in Sri Lanka and a few foreigners, he said.

He said that the 17-passenger new twin engine aircraft that was brought in May 2007 was a great success from the beginning.

There was a sharp increase in passenger demand with 14 flights per week.

Deccan Lanka caters to passengers in three categories - high end, medium and economy.

Deccan Aviation Lanka is the holder of the helicopter operator’s licence in Sri Lanka since 2004 and the Group has 24 percent equity of the company.

Deccan Aviation Lanka jointly with JS Air operates a Beech 1900c on domestic and international charters. Domestic charters consist of transportation of essential cargo between Colombo and Jaffna as well as passenger charters within the country.

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At a glance

* Rapid improvement in aviation industry

* Sharp increase in passenger demand after the war