CAPA Signs Landmark MoU with Leading Indian Merchant Bank

Press Release

(NEW DELHI: 23 December 2005) Centre for Asia Pacific Aviation (CAPA) has signed a landmark agreement with SREI Capital Markets Limited (SCML) to provide advisory services to the Indian aviation sector.

The Memorandum of Understanding (MoU) is the first of its kind in India, between CAPA, a specialist Sydney-based aviation consulting practice, and SCML, a merchant banker operating in the Indian private sector. The agreement was signed in New Delhi by Mr. Kapil Kaul, CEO, Indian Subcontinent and Middle East of CAPA and Mr. Ashok Pareek, Head of Capital Markets, SCML.

Announcing the agreement, Mr Kaul stated, "CAPA is pleased to partner with SCML to offer world class expertise to the Indian air transportation industry. The CAPA-SCML partnership combines specialist skills, in-dept industry knowledge and strategic oversight to meet the needs of this sector throughout the aviation value chain." The two organisations will complement their skills and expertise to provide infrastructure advisory services to the Indian aviation sector. Their joint offering will enable CAPA and SCML to cater to the growing number of participants in the industry and to pursue emerging business opportunities.

CAPA, Asia's leading specialist aviation consultancy, will provide advisory expertise in the areas of airline start-up planning and management, airline restructuring, airport marketing and development strategy, passenger and freight traffic forecasting, route analysis and development, tourism development policy strategies, government policy and regulatory analysis.

SCML, a SEBI-registered Merchant Banker and Underwriter will render financial expertise in the areas of financial engineering, transaction structuring, restructuring, privatisation, investment analysis and risk management, raising of resources through floatation in the domestic and/or overseas markets and arrange for debt and equity funding.

The aviation sector in India is currently experiencing rapid growth, and CAPA projects that over the next five years, domestic passenger traffic will increase at a compounded rate of 20-25% per annum. In view of such growth prospects, the opportunities for infrastructure advisory in the aviation sector abound.

Mr. Hemant Kanoria, Director - SCML remarked, "The aviation industry is fast emerging as a key sector in the growth dynamics of the Indian economy. The Low Cost Airline concept is re-defining transportation and logistics. We firmly believe that the SCML - CAPA partnership will be able to deliver end-to-end solutions to clients in airlines start-up, transaction structuring, raising of resources and related advisory services.