Air Deccan and Kingfisher to merge.

Nikhilb2008 · 20th December 2007, 07:54

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

jkdas · 20th December 2007, 08:04

Merging means one name/brand?

I doubt as AD has its own advt now.

Sam Kapasi · 20th December 2007, 08:36

Quote:

Originally Posted by nikhilb2008

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.

Nikhilb2008 · 20th December 2007, 08:46

Quote:

Originally Posted by Sam Kapasi

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.

eclectix 1st · 20th December 2007, 09:28

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.

spadival · 20th December 2007, 10:56

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 !!!

VJ_MAVRICK · 20th December 2007, 11:22

Quote:

Originally Posted by eclectix 1st

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

SohailPistawala · 20th December 2007, 11:30

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).

safari_lover · 20th December 2007, 13:13

Quote:

Originally Posted by jkdas

Merging means one name/brand?

I doubt as AD has its own advt now.

One company, two brands

theMAG · 20th December 2007, 13:46

Great. So now we have one airline whose hot airhostesses make you believe its worth waiting for your long delayed flight.

hondadude · 20th December 2007, 14:25

Quote:

Originally Posted by jkdas

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.

maddy42 · 20th December 2007, 16:22

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

20th December 2007, 07:54	#1
Nikhilb2008 Distinguished - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 5,196 Thanked: 10,138 Times	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
	() Thanks

20th December 2007, 08:04	#2
jkdas Senior - BHPian Join Date: Sep 2005 Location: Thiruvananthapu Posts: 9,687 Thanked: 1,492 Times View My Garage	Merging means one name/brand? I doubt as AD has its own advt now.
	() Thanks

20th December 2007, 09:28	#5
eclectix 1st BHPian Join Date: Oct 2007 Location: BANGALORE Posts: 381 Thanked: 5 Times View My Garage	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.
	() Thanks

20th December 2007, 10:56	#6
spadival Senior - BHPian Join Date: Oct 2004 Location: Melbourne, AU Posts: 1,773 Thanked: 26 Times View My Garage	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 !!!
	() Thanks

20th December 2007, 11:30	#8
SohailPistawala BHPian Join Date: Nov 2006 Location: Mumbai Posts: 434 Thanked: 25 Times	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).
	() Thanks

20th December 2007, 13:46	#10
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,217 Thanked: 1,807 Times View My Garage	Great. So now we have one airline whose hot airhostesses make you believe its worth waiting for your long delayed flight.
	() Thanks

20th December 2007, 16:22	#12
maddy42 Senior - BHPian Join Date: Aug 2007 Location: Coorg Posts: 2,131 Thanked: 1,328 Times View My Garage	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
	() Thanks