KINGFISHER AND DECCAN MERGER PDF

This case study is a sequel of the case titled, ‘The First Low Cost Carrier of India’ written by the present author in the year , when the homegrown airline Air. Accenture favours a merger between Air Deccan and Kingfisher Airlines. The Kingfisher Airlines-Deccan Aviation merger swap ratio has been fixed at This means shareholders in the UB group-promoted.

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7:3 swap for Kingfisher-Deccan merger

We are talking to bankers. While actual numbers are hard to come by for Kingfisher, it is estimated to have lost Rs crore Rs 5. Capt Gopinath on the future of Deccan. Officials from the factories serving the iconic brands believe that the Indian auto maker would offer more long-term security than One Equity, the other leading bidder.

Kingfisher-Deccan merger: Will it work?

We are sure we would be able to deliver and sustain. It is important for us, but not the sole criterion. We would aim to increase revenues on every flight we take. The combined entity will also need large capital infusion for the proposed international forays by the two brands. Abstract This case study is a sequel of the case titled, ‘The First Low Cost Carrier of India’ written by the present author in mwrger yearwhen the homegrown airline Air Deccan abd at its zenith and was becoming a game changer of the Aviation sector in India.

The resultant negotiation power and costs saved in fuel and maintenance will be the added benefits. Both currently operate a combined fleet of 78 Airbus and ATR aircraft with Kingfisher having new Airbuses on order including 5 Aswhile Deccan has 54 Airbus A family aircraft awaiting delivery.

Experts dedcan it’s important kingdisher run the two airlines separately as they have different cost bases and pricing strategies. Fill in your details: To place your order, kindly fill in and submit the form below. There have been some expressions of interest from some private equity partners and merchant bankers.

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OutlookReport releasedMarch 7,accessed on January 10,www.

Kingfisher to merge with Air Deccan

Thirteenth Annual report,Deccan Aviation Limited. It will have a full-service airline, a no-frills airline, plus international operations under one umbrella,” merged an airline expert and investor. Kingfisher Airlines’ former CFO A Raghunathan, in response to a query some time ago, had said that the airline had got Rs crore Rs 5 billion in equity, loans and guarantees from the group. Call for Papers – Civil Engineering.

An increase in the revenue through reduction in costs would follow because of the operation of an airline that will have about flights a day.

My Saved Articles Sign in Sign up. Experts say the Qantas model worked because Jetstar’s operation was independent. Annual reportKingfisher Airlines Limitedp.

Will be displayed Will not be displayed Will be displayed. Which is why he’s been trying to blur the differences with the makeover of Deccan. This journal is a member of and subscribes to the principles of the Committee on Publication Ethics.

Jet Airways paid Rs 1, cr to buy the entire airline, in addition to Rs cr paid earlier by Jet as advances and interest. It is the right time for the merger. But what we are looking at is that the world has changed dramatically and there is a pool of about 2.

Whenever they have tried to merge or work together under one umbrella, they have nearly failed. Jetstar Asia, a no-frills carrier promoted by Qantas, was successful initially, but is now struggling to expand. Both the airlines will retain their brand entities and also leverage respective business strengths. There have been exceptions to the rule.

People say worldwide aviation companies are incurring losses. Inwhen it started its operations, losses were about Rs crore Rs 2.

Deccan, Kingfisher to run as two separate entities post merger – Livemint

We are looking at raising Rs 25 crore Rs million for the combined business and Deccan would be the surviving entity.

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NIFTY 50 10, 2. How will you be able to give a competitive edge when mergers across the globe have not been too profitable?

What we are looking at is an increase of Rs crore in the first six months in the bottom line once we launch the international operations. Trade unions have thrown their weight behind Tata Motors.

Drag according to your convenience. Governments are now deregulating operations and private carriers are moving in. Foul language Slanderous Inciting hatred against a certain community Others. Article Tools Print this article. The group’s backing is a pillar for us,” he had said.

This, despite the fact that these were subsidiaries, whose operations were independently managed. Vijay Mallya of the Kingfisher Airline group.

With combined accumulated losses of around Rs 2, crore Rs 20 billionthe new entity created by the merger of unlisted Kingfisher Airlines with Deccan Aviation will have many strengths, but its balance sheet will not be one of them.

The new bigger airlines will lead to substantial synergies, better productivity and lower operational costs, the merger will enable us to fly jerger from August next, especially across Europe and the US. Email the author Login required. It has been ddccan for many years that it doesn’t work,” said an industry expert. Never miss a great news story! Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings.

Furthermore, as the merger story unfolds, it brings out the truism of consolidation – that one deccna gain is another man’s loss.