Logistics services provider Blue Dart Express plans to purchase an aircraft by November this year to raise its air cargo handling capacity.
In a BSE filing today, the company said it will seek shareholders approval for the resolution at its 24th annual general meeting (AGM) to be held on July 29 this year.
Blue Dart will seek shareholders consent for availing of services from Blue Dart Aviation Ltd (BDAL) as contained in Aircraft, Crew, Maintenance and Insurance (ACMI) Agreement to be renewed from March 11, 2015 to September 30, 2016, it said.
Blue Dart holds 49 per cent equity shares of BDAL and by virtue of the same, BDAL is an associate of the firm, the filing added.
The renewal of ACMI contract includes an estimated value of transaction from March 11, 2015 to March 31, 2016 of Rs 720 crore and an estimated value of transaction from April 1, 2016 to September 30, 2016 of Rs 400 crore, it added.
"It is proposed to add one aircraft during November, 2015 to increase the air carriage capacity which will result in increased cost of operation. Such increase has been factored in the estimated value of the transaction from March 11, 2015 to March 31, 2016," Blue Dart said in the filing.
Blue Dart Aviation has a fleet of 5 Boeing 757, providing a network payload of 300 tonnes across 60 route connections each night, it website said.
Blue Dart Express has entered into ACMI contract with BDAL for a dedicated air carriage capacity to ensure strong support in sustaining its leadership position in its business.
The firm is the only customer of BDAL and provides services as per network requirements of the company.
Blue Dart Express shares today rose by 1.15 per cent to settle at Rs 6,236 per share at the BSE.
