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Old 20th December 2007, 07:54   #1
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Default Air Deccan and Kingfisher to merge.

The two companies are merging based on a report by Accenture which recommended the merger. UB holdings will own the majority stake and Dr Vijay Mallya will be the CEO and Chairman while Gopinath would be the Vice-Chairman.

This had to happen. Most of us here saw this coming I guess the moment Vijay Mallya picked up a 26% stake in Air Deccan. The best part for Kingfisher is that, now, they can fly abroad as Air Deccan has already been in operation for more than 5 years.

Deccan, Kingfisher to merge
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Old 20th December 2007, 08:04   #2
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Merging means one name/brand?

I doubt as AD has its own advt now.
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Old 20th December 2007, 08:36   #3
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Quote:
Originally Posted by nikhilb2008 View Post
I guess the moment Vijay Mallya picked up a 26% stake in Air Deccan.
The news report states a 46% holding, not 26%. Interesting, I always assumed Dr. Mallya would not dilute his brand equity. The Kingfisher brand is premium, Deccan is not. In fact they have just gone through the new look brand building of the new "Simplifly Deccan" in Kingfisher colours.
Another change looks unlikely in the immediate future.
But that
Quote:
The best part for Kingfisher is that, now, they can fly abroad
could justify everything. They've been trying for a while. In fact that was the reason for the initial (low) bid for Sahara.
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Old 20th December 2007, 08:46   #4
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Quote:
Originally Posted by Sam Kapasi View Post
The news report states a 46% holding, not 26%. Interesting, I always assumed Dr. Mallya would not dilute his brand equity.
He initially bought 26%. Then after some time, through an open offer, he picked up another 20%.

I was talking abt the start of this KF-Air Deccan deal.
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Old 20th December 2007, 09:28   #5
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Smile Queen of Good Times

Looks like Deccan is set to be the Queen of Good Times.

From a customer's view point, Lets hope that the Service of Deccan will be as good as KF & wont be the reverse of it.

Consolidation in the aviation industry is a good thing at the present time. Our airline companies are taking steps in the right direction at the right time. Unlike some of their global counterparts, who've declared bankruptcy / folded up.

cheers: to the newly married couple.
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Old 20th December 2007, 10:56   #6
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Whatever.. as long as the ticket prices don't increase !! Recently, I got a KingFisher ticket at a price lower than Deccan for the M'lore-Mumbai sector !!!
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Old 20th December 2007, 11:22   #7
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Quote:
Originally Posted by eclectix 1st View Post
Looks like Deccan is set to be the Queen of Good Times.

From a customer's view point, Lets hope that the Service of Deccan will be as good as KF & wont be the reverse of it.

Consolidation in the aviation industry is a good thing at the present time. Our airline companies are taking steps in the right direction at the right time. Unlike some of their global counterparts, who've declared bankruptcy / folded up.

cheers: to the newly married couple.

KF has always been the front runner in service and hopefully with this merger, AD service staff married into KF will also follow suit.... ..but was wondering will AD star on the KF logos for Toyota in F1 ... ..Guess not ..but with Mallya around one cant predict
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Old 20th December 2007, 11:30   #8
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Ahem Ahem, The Tickets might be priced a little higher say.... could increase by Rs.500, in order to break even they have to do that ... which was i guess the 1st move by Kingfisher and Air Deccan, since Deccan has Incurred Heavy losses in couple of financial years. The Ambience has changed.... better service and more accuracy towards On time Performance.

Off topic:
I've been representing the in-flight magazine for Simplifly Deccan
(ad sales).
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Old 20th December 2007, 13:13   #9
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Quote:
Originally Posted by jkdas View Post
Merging means one name/brand?

I doubt as AD has its own advt now.
One company, two brands
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Old 20th December 2007, 13:46   #10
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Great. So now we have one airline whose hot airhostesses make you believe its worth waiting for your long delayed flight.
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Old 20th December 2007, 14:25   #11
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Quote:
Originally Posted by jkdas View Post
Merging means one name/brand?

I doubt as AD has its own advt now.
If I read the article (in ET or Business Standard) correctly, they are going to retain both the brands. They are just merging the two legal entities (companies). IMO this will facilitate KF to fly abroad and is probably the primary reason behind this merger.
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Old 20th December 2007, 16:22   #12
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Well also Both the companies are in the Red. So hopefully by using common facilities it can see the green. Its a good move on the part of Gopinath if you look at things. Lesser tension so he can look into developing operations of his company
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