Merger of Kingfisher and Air Deccan Intr – Free download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online for free. 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. Vijay Mallya bought Air Deccan with his eyes closed. Kingfisher Airlines was once the toast of wealthy Indians who found never-before.

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Experts favour Kingfisher-Air Deccan merger

Vijay Mallya bought Air Deccan with his eyes closed. It looked as if some of the banks had extended loan to the airline based on Mallya’s popularity and charisma rather than the real worth of the airline. Mixing everything in one company doesn’t work.

When some reporter asked him whether that meant the deal had been made without any due diligence or checking the balance sheet, Captain Gopinath replied that it was true that during the negotiations, neither Mallya nor his officials ever asked to examine the books. The group’s backing is a pillar for us,” he had said. History is not on Mallya’s side.

The Hindu Business Line. And the SBI-led lending consortium of 17 banks can really have no fig leaf to hide its inept handling of the Kingfisher loan portfolio. Order Reprints The reprints of this article are available at the kingfishsr of Rs. But he squandered away this immense goodwill.


Gopinatha retired Indian Army captain who had gained experience in the aviation industry through his Deccan Aviation venture. Scarce manpower can be optimally utilised, insurance premium and lease rentals can be mrrger, infrastructure like engineering, ground handling, training can be combined.

‘Kingfisher-Air Deccan merger best fit’

Thirteenth Annual report,Deccan Aviation Limited. Archived from the original on 21 June But although managements of both the airlines have said both the entities would be run independently, insiders say some changes already have begun to surface with a brand name change for Deccan being toyed by Kingfisher.

The Vijay Mallya Story. It is not the elite that I consider as my customers.

He also wanted to give the airline a premium ,erger while it remained a low-cost carrier. The combined entity will also need large capital infusion for the proposed international forays by the two brands. Simplifly Deccan formerly known as Air Deccanwas the first Indian low-cost carrier.

There are some hilarious instances, some which reveal shocking inattention to detail and still some others which show why Vijay Mallya was never going to succeed in the airline business. It has been seen for many years that it doesn’t work,” said an industry expert. In wir book Giriprakash tries to sketch the man called Mallya. The air hostesses were trying their best to manage the situation.

Archived from the original on 8 August Airline experts say Mallya has a tough job on his hands. Indian Jerger of Management Bangalore. Byapart from other problems, caterers were unwilling to supply meals on some flights because of non-payment by Kingfisher.

Kingfisher to merge with Air Deccan | Business Standard News

Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in With commonality of fleet Airbus we intend eeccan of resources, aircraft spares, airport infrastructure such as X-ray machines, conveyer belts, step ladders. Laxman ‘s The Common Manwas often incorporated into the old livery. The Low Cost Carrier Worldwide. It is the humble cleaning women of merher office, the auto-rickshaw driver and other such people that we would like to cater to.


Massachusetts Institute of Technology.

The international operations, as and when both the airlines are allowed to kick-start, would bring in additional synergies.

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 Andd gained After extradition setback, liquor baron set to face bankruptcy proceedings in UK High Court Vijay Mallya extradition case: Many aviation experts point to Mallya’s acquisition of Air Deccan as one of his biggest mistakes, something which eventually lead to his airline’s loss spiral.

Kinhfisher team never went through the books of the loss making Air Deccan before Mallya agreed to buy it for a total consideration of Rs crore in The consortium has to recover almost Rs crore from a defunct airline, with almost no collateral! For routes of higher demand between major cities, Simplifly Deccan used its larger Airbus As.

Mallya is aware of these challenges. Some memorable snippets from the book: