Ahmedabad-based GSEC Aviation and Monarch Networth Capital have bought over the G R Gopinath-promoted Air Deccan, besides jointly acquiring majority stake in Air Odisha, which is set to launch its services on regional routes from Saturday.
Significantly, GSEC Aviation is owned by Rakesh Ramanlal Shah, who is married to Prity, the sister of the $11 billion Adani Group Chairman Gautam Adani.
Under the new structure, both the airlines would be owned by a new company called GSEC Monarch Aviation, in which Air Deccan would hold 50 per cent stake, while the rest would be held by GSEC Aviation and Monarch Networth.
Confirming the investment in the two carriers, GSEC Aviation whole-time Director and Rakesh Shah's son Shaishav Shah said both Air Deccan as well as Air Odisha would now be run under a new holding company called GSEC Monarch Aviation.
Shah, however, did not disclose the investment being made into the two companies.
Under the new structure, the Radhakanta Pani family, which is the original promoter of the Bhubaneswar-based Air Odisha, would divest 60 per cent of their stake to GSEC Aviation and Monarch Networth, he said.
“We are making a joint venture company called GESEC Monarch Aviation, which will be 50 per cent owned by GSEC Aviation and Monarch Networth Capital and the rest will be with Air Deccan,” Shah told PTI.
The JV would hold 100 per cent of Air Deccan and 60 per cent of Air Odisha, he said, adding both GSEC Aviation and Monarch have acquired equal stake in the two carriers.
While Gopinath would be the chairman of the new entity, Shaishav Shah would be the managing director and Himanshu Shah of Monarch would be deputy managing director, Shah said.
For Gopinath, this is the third aviation venture having sold his maiden airline — Air Deccan — to Kingfisher in 2007 and then burned his fingers with a cargo venture with around Rs 1 billion investment from Mukesh Ambani, and the thrid one being sold to the Adani kin now.
Air Odisha started its services as a non- scheduled operator in November 2012.