Deccan Aviation Ltd.

OST-2007-0036 - Exemption - India-US Scheduled Passenger

October 31, 2007

Application for Exemption

Decent intends initially to offer long haul nonstop services from a major city within India to one point in the U.S. Northeast and one point on the U.S. West Coast. Consistent with the terms of the bilateral agreement between the United States and India, Deccan requests from the Department an exemption permitting it to engage in the (i) scheduled foreign air transportation of persons, property and mail from points behind India, via India and intermediate points, to a point or points in the United States, and beyond; and (ii) charter foreign air transportation of persons, property and mail between India and the United States, and other charters, in accordance with 14 C.F.R. 212, and that the Department's approval note that Deccan will serve the United States in the name of Kingfisher Airlines.

Deccan is a citizen of India and is substantially owned and effectively controlled by Indian citizens. As of September 30, 2007, the largest shareholder of Deccan is Kingfisher Radio Limited, a commonly-controlled affiliate and sister company of Kingfisher Airlines.

Air Deccan has grown significantly since its founding in 2003. In only four years, Air Deccan has increased its daily flights from 46 to 350, while the number of annual passengers has increased from 400,000 to more than 12 million. Destinations increased from 20 to 65, while its fleet has grown from eight aircraft to 42. The company has more than 75 short and medium haul aircraft on order, which will be delivered in the next four years. By any measure, Air Deccan has undergone enormous growth. For its planned international longhaul operations to, inter cilia, the United States, Kingfisher Airlines would dry lease several of its A340-500 and other long range aircraft to Deccan. Those aircraft will be configured for three classes of service and will offer a number of state-of-the-art amenities including live television, award-winning meals and the latest ACARS communications and monitoring technology.

Counsel: Squire Sanders, Marshall Sinick, 202-626-6651, msinick@ssd.com