Deccan puts funding on hold till route rationalisation with Kingfisher

Deccan Aviation, which was set to receive $20 million each during the next two months from a $100-million deal it struck with two European banks, has put the funding on hold till it completes its route rationalisation with Kingfisher Airlines.
Sources in Deccan Aviation, which runs low cost airline Simplify Deccan, told Business Line that the airline is revisiting its fleet acquisition plan because of the rationalisation of routes, which is currently underway with Kingfisher Airlines.
The consulting firm Accenture has been hired to find synergies of operations between the two airlines. It is expected to submit a report in January, which would spell out the road map the airlines have to undertake to turn themselves into profitable entities.
Plans
As per the earlier plan, Air Deccan was expected to add one aircraft each from January to March 2008. The airline currently has 41 aircraft, which includes 22 A320s and 19 ATRs. Kingfisher Airlines is a subsidiary of the UB Group, which owns nearly 46 per cent stake in Deccan Aviation.
26/11/07 K. Giriprakash/Business Line

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Categories: Kingfisher Nov 2007, Simplifly Deccan Nov 2007