Air Deccan fares to go up: Mallya

Mumbai: A day after Kingfisher Airlines announced buying 26 percent stake in Air Deccan, UB Group Chairman Vijay Mallya on Friday indicated fares of the low-cost carrier would go up as no one wants to run on losses.
"It may not happen immediately...but we are in business to make profits," Mallya told a press conference held jointly with Air Deccan chief Capt Gopinath here.
Ruling out the possibility of taking a 100 percent share in Air Deccan, Mallya said: "As of now United Breweries Holdings has picked up a 26 percent stake and it would make an open offer to acquire a minimum of 20 percent to all shareholders of Air Deccan at a price of Rs 155 in compliance with Sebi regulations next week".
UB Holdings has made an initial investment of Rs 150 crore in Deccan Aviation and a further investment of Rs 396 crore would be made by this month-end for 26 percent stake.
The new shares will be allotted at Rs 155 per share, representing around 10 percent premium of the current market price of the shares of Deccan Aviation.
02/05/07 Zee News

To Read the News in full at Source, Click the Headline

Categories: Air Deccan Jun 2007, Kingfisher Jun 2007