Air Deccan (B)
Date
2010-09-06Author
Pandey, Ajay
Raghuram, G.
Jain, Rekha
Poddar, Sweta
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Show full item recordAbstract
Air Deccan concluded its Initial Public Offering (IPO) in May 2006, which did not receive a strong positive investor response. The company had reported a loss in the previous year. It further suffered a financial crunch due to continuous hike in fuel prices and addition of new aircrafts. To partly counter this situation, Air Deccan had adopted a unique financial structure by way of a Special Purpose Company to fund its additional purchase of aircrafts. Even under this situation, it had significant expansion plans. The case focuses on mobilizing the required funds for its expansion plans as of October 2006.
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- Cases and Notes [2722]