Kingfisher, Air Deccan close to sealing deal

Mumbai: Vijay Mallya, the flamboyant and aggressive king of spirits, is believed to be buying Air Deccan, India’s leading low-cost airline, in a move that would make him the country’s biggest aviation player by marketshare.
The two groups are believed to be in an advanced stage of discussions and an announcement is expected soon. A senior Kingfisher Airlines official said the two airlines will be run separately.
Air Deccan will retain its low-cost status while Kingfisher will run as a full-service airline.
Captain GR Gopinath, CEO of Air Deccan, flatly denied any deal was in the offing with Kingfisher.
The Air Deccan-Kingfisher alliance would have the largest market share in the industry and is likely to pose a stiff challenge to Jet Airways, which recently bought out Air Sahara to cement its position in the domestic market.
Talk of Kingfisher’s interest in Air Deccan has been doing the rounds since April.
31/05/07 Cuckoo Paul/Economic Times

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Categories: Air Deccan May 2007, Kingfisher May 2007