MUMBAI: Captain Gopinath, pioneer of low-cost flying in India, will start his second innings in aviation by launching a dedicated air cargo business, branded Deccan 360, on Wednesday in Nagpur.

Mr Gopinath has already invested Rs 125 crore in the cargo venture Deccan Express, and needs to raise an additional Rs 150 crore. The venture would hire about 5,000 people in five years. In the first phase, the company plans to appoint 100 franchisees and each franchisee will hire 10 people. It will fly three Airbus A310 planes and seven smaller ATR planes to connect 17 Indian cities and international destinations like Dubai and Hong Kong.

With not much finance coming to fund his cargo venture due to the slowdown, Mr Gopinath sold his stake in Kingfisher Airlines to raise funds.

The latest International Air Transport Association (IATA) data shows cargo traffic is 12% above its December 2008 low, but 17% below the peak early last year.

Deccan Cargo has also signed an agreement with the GMR Group for setting up express cargo operations at Delhi and Hyderabad airports, which along with the hub in Nagpur, will form an extensive multimodal storage, transportation and delivery network.

Deccan Express Logistics will pitch against established players such as Blue Dart, Gati, TNT Express and First Flight in India’s domestic cargo and logistics market. The $625-million domestic express cargo market is expected to grow at 20% annually over the next five years.

Mr Gopinath earlier had founded India’s first low-cost carrier Air Deccan, which was later taken over by Kingfisher Airlines and rechristened as Kingfisher Red. Nearly two years ago, Gopinath sold the commercial aviation business Deccan Aviation to Vijay Mallya’s Kingfisher Airlines.

Viewed: 353 views | Rating: (No Ratings Yet)
 Loading ...