Span Aviation (I) Ltd will induct four 13-seater Beechcraft Superking Air B-200s and two 19-seater Beechcraft 1900-C aircraft through a lease purchase agreement signed with Raytheon Aircraft Company of the US. All the 6 aircraft are expected to arrive in India by January-end.
The expansion is being financed through widening of equity and term loans involving a total investment of Rs 10.5 crore.
The State Industries and Investment Corporation of Maharashtra (Sicom) has picked up 29 per cent equity involving a total investment of Rs 2.5 crore. Sicom has also disbursed Rs 2 crore as term loan.
Pune-based industrialist Avinash Wardekar, too, has picked up a stake of 29 per cent after pumping in Rs 2.5 crore into the company.
Following the offering of equity stake to Sicom and Wardekar, who, together now control 58 per cent equity in Span Aviation, the promoter of the airline Prabin Gupteys stake has come down from 100 per cent to 42 per cent.
The new equity holders in Span Aviation will have two representatives each on the companys board. Avinash Wardekar will become the chairman of Span Aviation, while Sicoms managing director PD Karandikar will be the vice chairman. Guptey will continue to be the managing director of the company.
At present, Span Aviation operates 2 Cessna 13-seater aircraft. Earlier, the chief minister of Maharashtra, Manohar Joshi, had mooted the idea of floating the states own airlines.
Span Aviation (I) Ltd will be rechristened Span Aviation Maharashtra Ltd, following the picking of equity stake by the state financial institution.
With the acquisition of 6 additional aircraft, the company has decided to embark on a major network expansion programme.
Several air routes are being added to its existing network.
