Pawan Hans to spend about Rs 560 crore to raise fleet size to 12 aircrafts

NEW DELHI: Pawan Hans Ltd, the government-owned helicopter operator, will spend about Rs 560 crore to add 12 aircraft to its fleet as the company gears up to meet growing demand for transportation services ahead of a proposed initial public offering. “Pawan Hans will buy 10 helicopters and two seaplanes during fiscal 2016,” said a civil aviation ministry official, who did not want to be identified. “This acquisition will be according to the plan approved by the erstwhile Planning Commission.”

The company will borrow 80% of the funds required for the purchase while the remainder will be generated from internal resources. The finance ministry allocated Rs 110.95 crore in the 2015-16 budget to be raised through internal and external budgetary resources for the acquisition of aircraft. The government plans to divest a stake in Pawan Hans during FY16 and has hired SBI Caps as an advisor.

The company, currently has 46 helicopters and runs a seaplane service in the Andaman & Nicobar Islands with one aircraft. “Pawan Hans acquiring a new helicopter fleet is both a strategic as well as a street-savvy move. The latent demand for onshore, offshore, aerial services and transport operations has grown exponentially and we believe Pawan Hans should eventually reach a combined fleet of 70 aircraft and helicopters that will give them a commercial and competitive edge in the market,” said Mark D Martin, founder & CEO of Martin Consulting LLC, an Asia-based aviation consulting firm.

Pawan Hans, a mini-ratna company, posted a profit of Rs 38.6 crore on revenue of Rs 530 crore during 2013-14, an increase from earnings of Rs 11.7 crore profit in 2012-13. The company is 51% owned by the government through the civil aviation ministry and the rest is held by Oil & Natural Gas Corporation.