Mallya to prune Deccan's operational costs

New Delhi: UB Group chairman Vijay Mallya is now moving ahead with plans to cut operational costs of the Bangalore-based airline. To begin with, the airlines’ operations in the north-east would be pruned.
Mallya has urged the civil aviation ministry to allow Deccan to withdraw flights on some routes, besides limiting frequency on a few sectors from the upcoming summer schedule. UB Group, which owns Kingfisher Airlines, bought a 26% stake in Air Deccan in June last year for Rs 550 crore. It later acquired 20% in the airline through an open offer. “Withdrawal of operations and reduction in frequency on several routes in NE is planned due to poor load factors in the last six months. This has forced us to carry out route rationalisation and contain losses to some extent,” Mallya has said.
Together, the two airlines have an accumulated loss of nearly Rs 2,000 crore.
28/02/08 Nirbhay Kumar/Economic Times

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Categories: Deccan Feb 2008, Kingfisher Feb 2008