Kingfisher-Deccan merger: Will it work? Deccan shares climbed to a week high of Rs in intra-day trade on Wednesday, before closing at Rs Airline experts say Mallya has a tough job on his hands. Whenever they have tried to merge or work together under one umbrella, they have nearly failed.
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Early years[ edit ] Kingfisher Airlines was established in It was owned by the Bengaluru based United Breweries Group. The airline started commercial operations on 9 May with a fleet of four new Airbus As operating a flight from Mumbai to Delhi. Its registered office was located in UB City , Bengaluru.
The acquisition of loss-making Bangalore-based Air Deccan in made matters worse. However, having regard to improvement in the economic sentiment, rationalization measures adopted by the company, fleet recovery and the implementation of the debt recast package with the lenders and promoters including conversion of debt into share capital, these interim financial statements have been prepared on the basis that the company is a going concern and that no adjustments are required to the carrying value of assets and liabilities.
Mallya indicated that his solution was for the government to reduce fuel and other taxes. The government was engaged in assessing whether to bail out the company and other airlines or let market forces determine which survived. Mallya was looking for buyers for the Vile Parle Kingfisher House. By that time Mallya had left India for the UK despite court proceedings by Indian banks initiated against him.
Two years later the British Courts ordered extradition of Mallya after a prolonged legal battle and Mallya could be brought back to India if his appeal against the court order is not turned down.
It had plans to launch long-haul flights to cities in Africa, Asia, Europe, North America and Oceania with deliveries of new aircraft. All long-haul routes were operated on the Airbus A On the day of suspension of all international operations, 10 April , Kingfisher Airlines served 25 domestic destinations within India.
Kingfisher Employees[ edit ] Kingfisher Employees had their dues prior to the carrier suspending its operations.
Kingfisher, Deccan agree to merge
The merger will create the largest player in the domestic aviation market and pave the way for Vijay Mallya to fly his Kingfisher Airlines to overseas destinations. Deccan Aviation will subsequently be renamed Kingfisher Airlines. Both the airlines are in the red. While Deccan Aviation reported a loss of Rs crore for the year ended June 30, , Kingfisher Airlines had a loss of Rs crore on its books for the year ended March 31,
'Kingfisher-Air Deccan merger best fit'
Mallya said he could come in as an investor in Air Deccan. Talks began a week ago, according to Gopinath, and the deal was finally struck at 4. Size matters in this cut-throat business and consolidation is the only way to stay afloat. In their coming together, the two players are a study in contrast.