No plans to merge, echoes Mallya; Goyal

Hyderabad: Amid speculation that there could be a merger between Jet Airways and Kingfisher Airlines, promoters Vijay Mallya and Naresh Goyal said that there are no plans for equity sharing and there are no discussions on this issue.
"There is no equity swap. Our understanding is for purely commercial alliance," Mallya said.
Justifying the coming together of the two airlines, which account for about 60 per cent of the market share, Goyal said that the break-even point for the aviation sector is at 90 per cent capacity utilisation whereas, "We are now operating between 60-70 per cent."
Goyal said, "On top of all this, international airlines are dumping capacity in India, lowering their prices knowing we cannot match the competition.... therefore we have to work together."
15/10/08 PTI/Economic Times

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Categories: Jet Airways Oct 2008, Kingfisher Oct 2008