|
EADS, Jupiter Aviation in talks to convert jets to freighters
POSTED: 8:50 a.m. EDT, May 25,2007
EADS, the parent of Airbus Industrie, has been holding talks with Jupiter Aviation to establish a facility to convert passenger aircraft into air freighters.
Jupiter Aviation is subsidiary of Jupiter Capital, a venture capital company founded by Rajeev Chandrasekhar in 2005.
A report by the Business Standard of India said that an estimated US$100 million would be invested in the facility, which would focus on both domestic and international projects.
Sources close to the deal were reported to have said that it was too early at this stage to reveal an exact location, equity structure, business plan and final investment for the facility, which would offer a cheaper alternative to buying brand new freighters. It is said to cost between $7 and $10 million to convert a commercial jetliner into a freighter.
This latest development comes after Jupiter Aviation and EADS earlier signed a memorandum of understanding to collaborate in aviation ventures that would focus on aircraft maintenance, repair and overhaul, and training for aviation personnel.
The pact is reported to have paved the way for both companies to team up with other international partners in India and overseas to develop the nation's aviation infrastructure.
It also coincides with state-run aerospace company Hindustan Aeronautics (HAL) finalising a deal to set up a conversion centre for Boeing aircraft as part of its maintenance, repair and overhaul (MRO) centre. The plant would be modelled on Germany-based airplane converting firm EFW, a wholly-owned subsidiary of EADS. |
|
RELATED