Deccan 360 referred to debt restructuring; Is India Inc., not yet ready for an air cargo service ?

GR Gopinath’s aspirational venture – Deccan 360, India’s dedicated air cargo services is in deep red for sometime now. Deccan 360 has a debt of over Rs. 500 Crore. Of which, it owes Rs. 200 Cr to Axis bank, Rs. 160 Cr to SBI. As too many lenders can cause devastation to the company, Deccan 360 is being is being referred to the CDR cell for restructuring it’s Rs. 500Cr debt.

Touted to be India’s only dedicated air cargo services, Deccan 360 started off in the year 2009 with Rs. 75 Crore investment from GR Gopinath. Later, Mukesh Ambani led RIL picked up 29% stake in the company for Rs. 115 Cr.

As the company failed to ink in corporate relationship for its cargo services, the revenue build up was lot slower than expected, and the end result  was pretty much expected just like slew of other companies which tried to operate India’s air cargo services. Wondering which other companies burnt their hands on air cargo services .. ? Here is the list.

Elbee Services – started in 1996, shutdown in 1997 following one of its cargo carrier crash.

First Flight Couriers – started in 2007, shutdown few months later in the same year due to insufficient cargo capacity to operate

GATI – started in 2008. Terminated its operation in mid 2009 due to rising fuel prices, insufficient capacity.

Quickjet – planned for air cargo services along with aviation consultancy Cardinal Aviation, Tata Capital, Tata Investment and AFL. The venture never really took off.

As all the local air cargo companies failed to take off,  Deccan 360 was the only left out in this space until now. But with recent failure by Deccan 360, seems India Inc., is not yet ready for a local air cargo services. So, the only left out cargo freighter is Blue Dart and all other cargo companies just use their operations.

Since year 1996, many home grown companies have tried for air cargo ventures and none of them managed to run for more than few years. Deccan 360 is the latest victim. If people like GR Gopinath, Mukesh Ambani are not able to turn around in this air cargo space, it just means India Inc, is not yet ready for air cargo services. What else it could be ?