AVIATION NEWS                                      Back To Index Page
Jun 2007

Kingfisher, Deccan to save three billion rupees: Mallya

     Mumbai: UB Group head Vijay Mallya has said the synergies between Kingfisher Airlines and Air Deccan would save a minimum of three billion rupees in the first full year of operation. "I have no hesitation in saying that the opportunity of the Kingfisher-Air Deccan group to save on costs and to synergize our operations will be valued in my estimation in a minimum of three billion of rupees in the first full year of operation itself," Mallya said. Mallya also said the two airlines would leverage with vendors and suppliers to save on costs, adding that "the two airlines would now have fares from the cheapest to the luxury class". "We can offer the cheapest to the most expensive fares. We can cater to every single need and every single demand in the market place," he added. Mallya also said he had no intention of acquiring a 100 percent stake in Air Deccan and the open offer for an additional 20 percent was as per regulatory norms. The deal, struck at 5.5 billion rupees, values Deccan Aviation at about 21 billion rupees. United Breweries (Holdings) Ltd., which runs Kingfisher Airlines, on Thursday, said it would buy 26 percent of Deccan Aviation Ltd., which runs Air Deccan.
-Jun 2, 2007