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Thursday, November 02, 2000



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UPS-Jetair tie-up for express delivery services

Our Bureau

MUMBAI, Nov. 1

UNITED Parcel Service (UPS), the express carrier and delivery company, on Wednesday announced a 60:40 joint venture with Jetair, the general sales agency (GSA), for international express delivery services in the country.

The new company -- UPS Jetair Express Private Ltd -- has a start up equity of Rs 21 crore and hopes to grow at 15-20 per cent over the next five years. Profits are expected by the second year of operation with no further equity investment from e ither side slated in the five-year business plan.

It would be a co-branded service, Mr Mahiyar M. Sadri, CEO, Jetair, said.

The vendor relation UPS currently has with Elbee and Skypak would continue, Mr Charles Adams, President, UPS Asia-Pacific, said at a press meet here. More vendors would be added ``only if necessary,'' he added.

In key metros, at least to a limited extent, the joint venture itself will deliver to the end-customer. UPS, which has a 12-year old tie-up with Elbee, resorted to partnering Jetair for a joint venture, to cater to the critical need for air transport bac k-up. Elbee, it might be recalled, had earlier run an unsuccessful domestic cargo airline.

``This is the vital piece,'' Mr Adams said of the aviation-related joint venture and its position in the larger logistics operation of UPS in India, with Elbee and Skypak as vendors for final delivery fulfillment.

At the new ``virtual company''scheduled to start work by early 2001, Jetair will provide personnel and management while UPS will give technology and reach. Plans are under way to have operational facilities in Mumbai, Delhi, Chennai and Bangalore.

The GSA Jetair and its sister outfit, Jet Airways, belong to the same promoter group. However, since it was a GSA which was involved in the joint venture, carriers would be chosen from a customer point of view, Mr Adams said.

Thus, Indian Airlines (IA) would continue to be a part of the carrier basket in India for UPS, even though Jet Airways had a close link with Jetair.

From November 28, UPS will increase its cargo flights to Mumbai from the current five-a-week, to nine. Each of the Boeing 767 aircraft used on the sector, linking Mumbai to Taipei and Cologne, has a cargo capacity of 50 tonnes. The new flights planned al so feature B-767 aircraft.

UPS will begin deploying its delivery information acquisition device in India, from second quarter 2001.

Pic.: Mr Charles Adams, President, UPS Asia-Pacific (left) with Mr Mahiyar M. Sadri, Chief Executive Officer, Jetair Ltd, at a press conference in Mumbai on Wednesday.

Picture by Shashi Ashiwal

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