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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Mallya is aware of these challenges. Experts say the Qantas model worked because Jetstar’s operation was independent. To place your order, kindly fill in and submit the form below. We hope to break even in the next fiscal. The combined entity will also need large capital infusion for the proposed international forays by the two brands.

After the merger, Vijay Mallya will serve as chairman of the new entity, while co-founder of Deccan Aviation, Capt Gopinath will be its vice-chairman. Call for Papers – Civil Engineering.

We would generate more revenue through our network strategy and good understanding of the consumers through the assets we have. Only Payable at Par cheques are accepted. OutlookReport released, March 7,accessed on January 10, www. Email this article Login required.

Deccan, Kingfisher to run as two separate entities post merger

What is the expected range for the share swap ratio? Order Reprints The reprints of this article are available at the rate of Rs. We are talking to bankers. The criteria defined for this are laid down by the Supreme Court and will be based on the net asset value, market price and the discounted cash flows, which would be the deciding factors for reaching the ultimate swap ratios.

There have been some expressions of interest from some private equity partners and merchant bankers. Given that Deccan acquired oingfisher aircraft at a cheaper price than Kingfisher did, it should not be a surprise if Mallya one day says no-frills airlines won’t work in India and we will have just one airline, Kingfisher Airlines.

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The raison d’etre for demerger of scheduled air services from Kingfisher Airlines into Deccan Aviation [ Get Quote ] is to preserve the tax offset. How will you be able to give a competitive edge when mergers across the globe have not been too profitable? Jetstar Asia, a no-frills carrier promoted by Qantas, was successful initially, but is now struggling to expand. Capt Gopinath on the future of Deccan. To see your saved stories, click on link hightlighted in bold. Annual financial reports, http: Media center, 23 February, accessed on January 5, www.

Aviation Consolidation Looming In India: The new bigger airlines will lead to substantial synergies, better productivity and lower operational costs, the merger will enable us to fly overseas from August next, especially across Europe and the US.

Mixing everything in one company doesn’t work. They don’t like even the smallest deviation,” said a former airline executive who requested anonymity, as he was employed by one of the two airlines.

Inwhen it started its operations, losses were about Rs crore Rs 2. But what we are looking at is that the world has changed dramatically and there is a pool of about 2. There is a demand for low-cost sensitive fare on the metro routes and drivers of business can be different at different timings. This will alert our ahd to kingifsher action Name Reason for reporting: Aviation consolidation looming in India: Give us some pointers as to how valuation will be done.

Payment Options for Digital Articles. Both the airlines will retain their brand entities and also leverage respective business strengths. It is important for us, but not the sole criterion. Both the industries needed consolidation and were highly fragmented, but there have been dramatic changes in that business and we hope to repeat that in aviation too.

Kingfisher to merge with Air Deccan

Decacn say worldwide aviation companies are incurring losses. Email the author Login required. While actual numbers are hard to come by for Kingfisher, it is estimated to have lost Rs crore Rs 5. Foul language Slanderous Inciting hatred against a certain community Others. Air Deccan, which has been struggling with growing losses ever since it started, is running out of cash almost as soon as it raises it. As the kingfishet losses continued to mount, it was forced to sell a 26 per cent stake to Vijay Mallya for Rs crore Rs 5.

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Furthermore, as the merger story unfolds, it brings out the truism of consolidation – that one man’s gain is another man’s loss. Will be displayed Will not be displayed Will be displayed. Which is why he’s been trying to blur the differences with meryer makeover of Deccan.

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

References Mergers are called amalgamations, while Takeovers are acquisition of a part of equity capital of a company that enables the acquirer to exercise control over the affairs of the company. Both currently operate a combined fleet of 78 Airbus and ATR aircraft with Kingfisher having new Airbuses decxan order including 5 Aswhile Deccan has 54 Airbus A family aircraft awaiting delivery.

This will alert our moderators to take action. We are looking at raising Rs 25 crore Rs million for the combined business and Deccan would be the surviving entity. Strangely, a day after Vijay Mallya announced his plan to merge Kingfisher into Deccan, the budget carrier’s stock fell more than six per cent to Rseven as the BSE Sensex gained It is the right time for the merger.

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