Deccan 360’s woes lead to job cuts
12 / 07 / 2011
DECCAN 360 is to lay off staff in the wake of ongoing financial troubles.
In an email sent to its 600 staff, the company wrote: “We have done our best to hold the company with minimal operations, but could not succeed due to business and funding constraints. Hence, we [have] opted for restructuring and are in the process of discussing with investors and lenders.
“As part of this process, we are requesting some of the employees look for alternative jobs though we would love to get them back in future. Also, if someone wishes to go on long leave without pay, as and when the company revamps, they can [come] back.”
India’s budget airline pioneer Gorur Gopinath (right) launched Deccan 360 in an attempt to modernise the growing domestic cargo market. The company had leased three A310Fs, one ATR 42-300F and three ATR 72-200Fs from Mauritius-based lessor Veling but these were returned recently because of failure to pay dues.
Gopinath estimated the airline would pull in revenues of US$73.5 million by the end of the financial year 2010, but it only made $9 million, with losses of $44 million.
Gopinath blamed a lack of critical infrastructure in the country for the company’s failure to exploit growing demand for air cargo.