UPS Asia Pacific region president CA Adams told The Financial Express that the the existing relationship of UPS in India with Elbee and Skypack shall continue as usual.

UPS and Jetair have formed a 60:40 joint venture company to provide international express delivery services in India. The companies will invest Rs 13 crore and Rs 8 crore respectively, as their initial equity contribution in the JV.

The new company - to be called UPS Jetair Express Private Ltd - will be headquartered in Mumbai and is expected to commence operations in early 2001.

Jetair will provide the management, sales and service support through its existing offices in India while UPS will deploy technology to enhance customer service.

UPS also plans to increase its existing flights to nine from five by the end of 2000, Mr Adams said. Each flight has a capacity to carry 50 tonne and currently enjoys a load factor of 87 per cent, he said.

The company has already acquired 20,000 sq feet of space on lease from Nirlon at Goregaon, a north west Mumbai suburb, for a period of six years.

Construction work at this hub has started and is expected to be completed in two months time.

The JV is also on the verge of closing two other similar deals at Worli and south Mumbai, he said. The joint venture will give a new dimension to the logistics industry in India, according to Jetair chief executive officer MM Sadri.

Besides, Jetair also has a clear advantage of representing 18 international airlines for their passage and freight business through associate general sales agency companies, he said.