Reliance buys between 26pc and 49.9pc of Deccan 360

RELIANCE has purchased an undisclosed strategic stake in cargo airline Deccan 360, in a move that is expected to help spur a significant expansion of the carrier's road and air service network in India.

Air Deccan chairman GR Gopinath said that the size of the stake was between 26 and 49.9 per cent, Bloomberg reported.

The purchase came just days after the conglomerate said it would spend US$1.7 billion to acquire a natural gas field in the United States, underscoring the importance of the Indian air cargo market.

Deccan officials went on to add that the airline would introduce an express logistics services for both the retail and business-to-business sectors.

Air freight carriers handled 1.4 million metric tons of international and domestic cargo in India between April and December last year, a 10 per cent rise over the same period in 2008. Due to lack of adequate processing and warehousing facilities however, India's air cargo services still lag Korea's, Hong Kong's and China's.

Source: www.schednet.com