ETA-Ascon seeks jets for new airline

ETA-Ascon seeks jets for new airline

By Saifur Rahman, Business News Editor

Published: February 10, 2008, 00:45

Dubai: ETA-Ascon, one of the UAE's largest diversified conglomerates, is in talks with regional jet manufacturers Embrayer, Bombardier and ATR to acquire jets to start its new airline in India, a top official said.
"Yes, we have started talking to all three regional jet manufacturers - Embrayer, Bombardier and ATR - to acquire 70-90 seater regional jets for the new airline in India," Syed M. Salahuddin, managing director of the $4.3 billion Emirates Trading Agency-Associated Construction (ETA-Ascon) group, told Gulf News on Wednesday.
"We have already got the licence to start the airline. We are preparing for commercial launch in around October. It will be a regional airline."

New entry

ETA-Ascon group, a major player in shipping, trading, construction, real estate and power sectors, has recently entered into aviation business with Star Aviation - a new leasing entity.
"We already have eight aircraft leased to different airlines and the portfolio size is worth $200 million," Salahuddin said.
The group, jointly owned by Dubai's Al Ghurair Group and a group of non-resident Indians, which had grown its business through trading, shipping and construction, has further diversified its portfolio by entering into real estate, hospitality, cement production, steel manufacturing, retail, jewellery and food services.
It has rebranded its property and hospitality portfolio with ETA Star that has more than 15 million square feet of built-up area in the planning and construction, worth $10 billion.
It is also developing a Dh2 billion luxury neighbourhood - Dubai Lifestyle City in Dubai. "We are planning to develop Lifestyle Cities in other parts of the world," he said.
Shipping
However, the company which employs 58,000 people, is also expanding its core businesses. With 35 vessels, it owns the largest privately owned fleet.
"We have ordered 30 vessels worth $1.5 billion that will join our 35-strong fleet in four years. Among the new vessels, the ratio between bulk carriers and liquid will be 50:50. We are also expanding our liquid carriers fleet," he said.
"As 80 per cent of the global trade move by sea, we are enjoying our share of growth. Last year, we carried 25 million metric tonnes of cargo, which will go up to 30-35 million tonnes."
India expansion
ETA-Ascon group has been investing in India heavily as major opportunities are being unlocked by the Indian government.
"India provides the biggest opportunity for us and we see so much scope for growth," he said.
His company is currently planning and developing two townships in India's Bangalore and Chennai.
"However, investment in infrastructure could unlock opportunities in other areas. For example, we have recently started a cargo rail service (Railway Wagon) to move containers between Delhi and Bombay, which will expand to all other major Indian cities as the economy grows there."

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