Deccan Chronicle Holdings group to start freighter service

MUMBAI: Deccan Chronicle Holdings on Wednesday announced Flyington Freighters, a group company, will start cargo freight operations from July this year.

The Reddy family-promoted company will invest $1 billion in this venture.

"We will be investing $1 billion in this venture, which will be India's first international dedicated freighter air-service," Deccan Chronicle Holdings' Chairman T Venkatram Reddy told reporters here.

Headquartered in Hyderabad, the service will fly international routes, he said.

Flyington has already placed orders for six A-330-200 F aircraft with Airbus and deliveries will commence from July 2009, Reddy added.

In the interim, Flyington will operate on leased aircaft provided by Airbus.

The initial investment in the venture will be from internal accruals "but at a later date, we may consider tapping the capital market," Reddy said.