• PAGE ONE
• INDEX
• HOME

Megapode mulls Hawker jet sale

Our Bureau

MUMBAI, Nov. 27

MEGAPODE Airlines, the closely-held aircraft-operating outfit floated by the Taj, its associates and other Tata companies, has plans to sell one of the two business jets that it operates.

The matter is only under discussion, a senior official of Indian Hotels Company Ltd (IHCL), said when contacted.

Megapode flies two aircraft - a twin jet Hawker Sidley 125-700B and a Falcon 2000 - both of 8-seater configuration. While the Hawker Sidley can be chartered for close to Rs 1 lakh per flying hour, the more luxurious Falcon is marketed at a rate of Rs 1, 75,000 per hour, an additional 15 per cent aviation tax applicable to both rates.

It may be recalled that the Falcon 2000 was a high profile entry to the Tata fold. Picked up soon after the models debut at an international air show, the plane was purchased in September 1999 and formally registered in March 2000. It can fly 3,000 nauti cal miles without refuelling and in the last full year of marketing, Megapode has done over 100 hours of business.

The candidate for sale is the 18 year-old Hawker Sidley aircraft. However, it is unclear how the transaction would eventually shape out because sources familiar with the proposal said, the aircraft is on lease to Megapode with the latter incurring all op erational and maintenance costs.

The plane was originally owned by Bombay Dyeing and acquired later by Mafatlal Finance. While the sale stands proposed, details on how sale proceeds should be managed are still to be finalised, given the lease arrangement, sources familiar with the propo sal said.

Currenlty, Megapode is marketing only the Falcon 2000. IHCL, through Megapode and as part of Taj Plus, was offering a branded air service called Taj Air.

While Megapode has interest in acquiring new aircraft, in view of the prevailing market conditions, all such plans are on hold. The market conditions have also dampened chances of speedy sales of the Hawker Sidley, sources said.

Megapode owns its aircraft on a fractional basis, implying thereby that Tata companies who participated in asset purchase are entitled to subsidised flying hours. Besides aircraft, the Tatas - through IHCL - are also now into owning yachts.

Two luxury yachts were recently acquired by IHCL, to add to the facilities offered by its leisure division.

They cost a couple of crores, Mr Jamshed S. Daboo, Chief Operating Officer, Leisure Hotels, IHCL, said, when asked.

One yacht has been positioned at Kochi, attached to the Taj Malabar hotel, with the idea of offering cruises in the Kerala backwaters. The other is positioned at Goa, attached to the Taj Exotica property.

Asked if the yachts would remain owned by IHCL or be managed by a separate company - as was the case with the two aircraft and Megapode Airlines - Mr Daboo said, those angles have not been looked into so far.