The reality: It’s Mallya at Air Deccan controls

Bangalore: Who’s in charge at Deccan Aviation? Vijay Mallya alludes it’s him. “With a majority stake that’s pretty inevitable, isn’t it?” Mallya told John Elliott, writing for CNNmoney.com
That’s not all. Elliott said Mallya may soon ground Deccan founder Capt G R Gopinath’s low-cost dreams after acquiring 26% stake in the carrier.
“The low-cost model doesn’t work in India. There is no question of cut-prices continuing in India — everyone wants to raise fares. Deccan is widely regarded as a market spoiler and that will stop.”
That puts to rest any confusion over who is in control at Deccan Aviation. It also undermines all claims of Capt Gopinath that he would continue to be in the driver’s seat.
After acquisition of 26% stake by Mallya, the share of Capt Gopinath and other promoters would come down to 16%. Mallya’s offer to pick up another 20% opens on June 26.
UB Group chief financial officer Ravi Nedungadi says: “The control has shifted from Capt Gopinath - individually - to the board.
The appointed CEO would report to the board instead of Capt.”
12/06/07 Praveena Sharma/Daily News & Analysis

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Categories: Air Deccan Jun 2007, Kingfisher Jun 2007