Kingfisher buys stake in Deccan

New Delhi: After the Jet and Sahara deal there's another big merger in the offing in the aviation space.


Vijay Mallya owned Kingfisher airline has bought 26 per cent stake in India's first and largest low cost airline, Air Deccan.


The stake will be bought through UB holdings.


The Air Deccan-Kingfisher alliance would have the largest market share in the industry with about 34 per cent.


It is likely to pose a stiff challenge to Jet Airways, which recently bought out Air Sahara to cement its position in the domestic market.


Since April onwards, talks of Kingfisher’s interest in Air Deccan have been doing the rounds. But Deccan has been faithfully denying moves towards a sellout. There were also reports of a Kingfisher team visiting Bangalore, possibly to study the Deccan’s balance sheets.


The officials were also to take a call on whether the airline makes sense for Kingfisher.

Incidentally during the last quarter, Air Deccan lost market share and slipped from its No 2 spot. For the same period, it also posted losses of about Rs 212 crore. The airline industry has seen a growth of nearly 20 per cent in the last five years, primarily led by low-cost carriers.


Air Deccan is the perfect fit for Kingfisher. Air Deccan may have to get a makeover if it wants to be part of Kingfisher"
— Vijay Mallya

Source : http://www.ibnlive.com/news/kingfisher-buys-26-stake-in-deccan/41812-7.html
 

MADZ

New member
What Air Deccan needs at this point in time is a complete makeover and facelift. With UB Holdings coming in to the picture, the expectations are also high.
 

MADZ

New member
I just hope the consumers don't get hurt in the long run. Cheap, no frills air travel should never cost more than A/C II tier train tickets. If that benchmark is not kept, govt. must investigate whether these mergers are being done with the intention of making a monopoly.
 

MADZ

New member
hope service standards will improve now with Air Deccan and they will keep their committments to customers
 

MADZ

New member
Kingfisher is throwing out good money for bad.....
Though Airdeccan has impressive growth story...its finacials are crumbling........
 

MADZ

New member
WELL NOWS LETS SEE HOW AIR-INDIA---INDIAN, JET-SAHARA, & KINGFISHER-AIRDECCAN FACE EACH OTHER.
 
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