The Indian Government has agreed to a proposal from UK-based banking and finance specialist the Hinduja Group to found a new Indian-based cargo airline with German flag carrier Lufthansa.

The new joint venture, provisionally called Lufthansa India, will be managed by Ashok Leyland, a Madras-based subsidiary of Hinduja.

The new airline is to begin operations in the second quarter of 1996, with an initial fleet of five Boeing 727-200 freighters.

Source: Flight International