Vijay Mallya, chairman, United Breweries (Holdings, has bought a 50 per cent strategic stake in Epic Aircraft for $120 million (about Rs 480 crore)), according to a statement by the UB Group.Mallya, whose UB Group owns the full-service carrier Kingfisher Airlines and also has a 26 per cent in Deccan Aviation (which owns budget carrier Air Deccan), has made the investment in Epic in his personal capacity.
Epic Aircraft, a unit of Aircraft Investor Resources LLC, manufactures private business jets with single and twin engines, capable of carrying six to seven people.While Mallya’s initial focus would be on the US market, which is the largest with 11,000 of 14,000 business jets in the world, he will also use this acquisition to tap the business jets market in India.
As India Inc looks to acquire assets abroad, its CEOs are looking for corporate jets that will fly them to destinations quicker and more comfortably.
Last year, licences were given to 100 people for import of private jets. India has about 150 business jets and it is expected that about 500 would be added in the next 4-5 years.
The US Federal Aviation Administration (FAA) has yet to certify Epic’s planes. According to sources, Mallya plans to take the help of Airbus to speed up the certification process.
Epic Aircraft hopes that its single-engine turboprop, dubbed Epic Dynasty, will be certified by Canada next year, and it hopes to get certification from the US FAA thereafter.
Read more in The Economic Times article.
