Vijay Mallya on Monday asserted once again that nothing can stop Kingfisher from reaching foreign shores.
NEW DELHI: Vijay Mallya on Monday asserted once again that nothing can stop Kingfisher from reaching foreign shores.
Amid intense speculation of a merger of Kingfisher into Deccan Aviation so that the “king of good times” can fly abroad on Deccan’s licence, Mallya said: “Accenture is working on the entire package and its report would be taken up on December 19 when the board of directors of Deccan meet.”
He said a decision on how the integration of the two airlines would proceed could be taken very quickly after the December 19.
Deccan-led consortium roots for low-cost airports: The Air Deccan-led consortium has put in expressions of interest for developing four low-cost airports in Karnataka - Bijapur, Shmoga, Bellary and Gulbarga.
The consortium comprises GVK Airports, IDFC and Rahejas besides Deccan and the proposed airports would be low cost since they would offer “basic” services, G R Gopinath, Air Deccan executive chairman, said.
“I have suggested that states should not wait for the Centre to develop airports. They should build low-cost airports in smaller cities and give them to private parties,” he said.
But since such airports cannot be revenue generators by themselves, they need to be supported by real-estate ventures to generate revenue. There have been reports earlier of Deccan mulling a split into four separate companies - infrastructure, aviation, MRO and helicopter businesses but Gopinath did not comment on such a move.
But is Kingfisher allowed to use Deccan’s licence to fly aborad? Mallya asserted: “Even the civil aviation minister Praful Patl has said that Kingfisher can fly on Deccan’s entitlement so I do not see a problem.”
Mallya’s comments come amid reports that the civil aviation ministry is thinking of amending merger & acquisition guidelines to prohibit any carrier from using a target company’s licence for flying overseas.
Interestingly, Capt G R Gopinath, executive chairman of Deccan, said earlier on Monday that the government stipulations on transfer of flying rights were still unclear. As per existing policy, Kingfisher must hold 51% stake in Deccan for getting overseas flying rights (which Deccan will get by August this year since it would have completed five years of domestic service).
It holds about 46% equity in Deccan as of now so that it could either hike stake to beyond the halfway mark or go in for reverse merger to qualify for Deccan’s overseas licence.
Gopinath said that while Deccan would become the low-cost carrier for short-haul flights to the Middle East and other surrounding destinations, Kingfisher would go for long-hual destinations.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}