Wednesday, August 20, 2008

India Will Allow Deccan to Offer Flights to London

New Delhi: Deccan Aviation Ltd., which operates Deccan, India's biggest low-fare airline by market share, received permission to start overseas flights, the civil-aviation ministry said.
"Traffic rights of seven services per week have been granted between Bangalore and London [Heathrow] utilizing an Airbus A-330 aircraft," the ministry said.
However, a final nod has to come from aviation regulator Directorate General of Civil Aviation the ministry said. Industry executives said this is just a formality.
Currently, only state-run Air India, the country's flag carrier, and full-service airline Jet Airways (India) Ltd., fly overseas.
Deccan is nearly 50% owned by UB Group unit United Breweries (Holdings) Ltd., which is in the final stages of merging its full-service carrier Kingfisher Airlines with Deccan Aviation.
The UB Group plans to rename Deccan Aviation as Kingfisher Airlines Ltd. as part of the merger process -- which is likely to be completed in a few weeks, UB Group Chief Financial Officer Ravi Nedungadi said Tuesday.
Deccan will be allowed to use either or both brands -- Deccan or Kingfisher Airlines -- for its overseas flights, a civil-aviation ministry official who didn't wish to be named and Mr. Nedungadi said.
20/08/08 Nitin Luthra/Wall Street Journal
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