Kingfisher to break-even in first half of next fiscal: CFO

NEW DELHI: Private carrier Kingfisher Airlines on Thursday said it expects to break-even by the first half of next fiscal (2008-09).

"We are hoping an early break-even because of accelerated revenue and cost synergy of the combined entity (Kingfisher and Air Deccan)," UB Group Chief Financial Officer Ravi Nedungadi told reporters on the sidelines of a conference.

Earlier this year, Kingfisher Airlines had acquired 26 per cent stake in low-cost carrier Deccan Aviation for Rs 550 crore. The company also made an open offer for another 20 per cent stake in Deccan Aviation. The open offer was oversubscribed. It received bids for 35 million equity shares against the issue size of 27 million shares.

The combined entity is expected to earn a total revenue of Rs 20,000 crore by March 2011, Nedungadi said.

He also said Kingfisher Airlines would not come out with an IPO in the next 12-18 months.

He said the biggest strength of Air Deccan was its vast network, and added that its philosophy and management approach was being changed to leverage the strength of both companies.

Kingfisher Airlines has appointed Accenture to provide consultancy for integration of the merged entities.

When asked about acquisition of aircraft, the executive said, "we would see through the process of integration how many aircraft we require."

However, the livery change of Air Deccan has commenced.

One aircraft with a new livery has already landed at Bangalore airport, while two aircraft with new livery is expected to reach within a couple of weeks.