Blue Dart To Acquire Third Aircraft By Year-End

Blue Dart Aviation is to buy its third aircraft by the end of the year. The company has shortlisted 3 aircraft and a final decision is to be taken in a couple of months.

Company chairman, Tushar Jani, says the aircraft will be purchased outright and is likely to be funded with debt and internal accruals. The companys debt-equity ratio now is 0.74:1, he said. Talks are also on with the Tamil Nadu government to acquire land for hangar facility near the city.

Total investment in the coming year will be around Rs 30 crore each for the aircraft and the hangar facility.

 

The third aircraft is being brought in because of the 30-40 per cent growth in inland traffic from Air India and various foreign airlines like Singapore Airlines, Emirates Air and Swiss Air. While it is not economical for them to be in distribution - an area of core competence for Blue Dart - it is a win-win situation for both, Jani said. The hangar facility will be in addition to the shop facilities already in place at Chennai and Calcutta. According to Shaji Karunakaran, chief engineering manager, Blue Dart Aviation Ltd, this will help reduce inventory costs in a big way.

With spares not readily available in the country at short notice, the company is forced to maintain high inventory levels although the cost is quite high. With just two aircraft on the fleet, we cannot to have one grounded for want of spares, he said.

The company had even bought one aircraft from Indian Airlines and stripped it for spares just to ensure the availability of spares. To pare inventory costs, Blue Dart is setting up separate repair and overhauling facilities. And, to optimise returns on investment made in such shop facilities, Blue Dart Aviation will undertake maintenance of aircraft belonging to other airlines.

Already such an arrangement is in place with Hinduja Lufthansa Air Cargo (India) for maintenance of wheels and brakes. The agreement also allows for a combined stores facility that will keep inventory levels to the minimum.

Blue Dart Aviation on Saturday also unveiled its unique software packages, developed in-house. Among other things developed, STAB - System for Trim and Balance - which works on the centre of gravity principle - helps plan loading on logical lines even as use of space is optimised.

With all flight details available on a single screen, cargo can be arranged and accommodated to the last minute even as flight safety is completely ensured.

No overloading or uneven distribution of load is possible - the system will reject it outright, says Suresh Nair, chief ground operations manager, Blue Dart Aviation while giving a live demonstration of STAB at a seminar on role of computers in flight safety organised in the city on Saturday.