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KINGFISHER AND DECCAN MERGER PDF

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. Accenture favours a merger between Air Deccan and Kingfisher Airlines. The Kingfisher Airlines-Deccan Aviation merger swap ratio has been fixed at This means shareholders in the UB group-promoted.

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The resultant negotiation power and costs saved in fuel and maintenance will be the added benefits. An increase in the revenue through reduction in costs would follow because of the operation of an airline that will have about flights a day.

It is important for us, but not the sole criterion. To see your merber stories, click on link hightlighted in bold.

Kingfisher & Deccan merge to form one entity – The Economic Times

Order Reprints The reprints of this article are available at the rate of Rs. Will be displayed Will not be displayed Will be displayed. This study is, therefore, an attempt to elucidate the strategic moves made by the acquirer – Vijay Mallya to restructure and reposition the erstwhile Air Deccan into a new combined entity – Kingfisher Red.

Mixing everything in one company doesn’t work. The combined entity will also need large capital infusion for the proposed international forays by the two brands. Experts say the Qantas model worked because Jetstar’s operation was independent.

The raison d’etre for demerger of scheduled air services from Kingfisher Airlines into Deccan Aviation [ Get Quote ] is to preserve the tax offset. Air Deccan, which has been struggling with growing losses ever since it started, is running out of cash almost as soon as it raises it.

Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. We would generate more revenue through our network strategy and good understanding of the consumers through the assets we have.

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Abstract This case study is a sequel of the case titled, ‘The First Low Cost Carrier of India’ written by the present author in the yearwhen the homegrown airline Air Deccan was at its zenith and was becoming a game changer of the Aviation sector kinhfisher India.

Capt Gopinath on the future of Deccan. Your Reason has been Reported to the admin. Airline experts say Mallya has a tough job on his hands. This, despite the fact that these were subsidiaries, whose operations were independently managed. But what we are looking at is that the world has changed dramatically and there is a pool of about 2. Furthermore, as the merger story unfolds, it brings out the truism of consolidation – that one man’s gain is another man’s loss.

OutlookReport releasedMarch 7,accessed on January 10,www. It is believed that Kingfisher Airlines was keen to mrrger its international operations on the Deccan flying permit due next year and that is one of the driving forces for the merger.

Experts favour Kingfisher-Air Deccan merger

The criteria defined for this are laid down by the Supreme Court and will be based on the net asset value, market price and the discounted cash flows, which would be the deciding factors for reaching the ultimate swap ratios.

OutlookReport released, March 7,accessed on January 10, www. We hope to break even in the next fiscal. Kingfisher Airlines’ former CFO A Raghunathan, in response to a query some time ago, had said that the airline had got Rs crore Rs 5 billion in equity, loans and guarantees from the group.

Aviation consolidation looming in India: Annual reportKingfisher Airlines Limitedp. They don’t like even the smallest deviation,” said a former airline executive who requested anonymity, as he was employed by one of the two airlines.

Payment Options for Digital Articles. While actual numbers are hard to come by for Anf, it is estimated to have lost Rs crore Rs 5.

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Deccan, Kingfisher to run as two separate entities post merger – Livemint

How to Meet the Store Brand Challenge views since: Deccn Airways paid Rs 1, cr to buy the entire airline, in addition to Rs cr paid earlier by Jet as advances and interest. Annual financial reports, http: What is important for us at this point in time is that the merger has given merge a flexibility of going international.

In terms of percentages, our objective is not dilution, but raising required funds with the lowest valuation. NIFTY 50 10, 2.

How to cite item. A Survey Study in West Bengal views since: Which is why he’s been trying to blur the differences with the makeover of Deccan.

7:3 swap for Kingfisher-Deccan merger

As the airline’s losses continued to mount, it was forced to sell a 26 per cent stake to Vijay Mallya for Kingfishwr crore Rs 5. Media center, 23 February, accessed on January 5, www. After the merger, Vijay Mallya will serve as chairman of the new entity, while co-founder of Deccan An, Capt Gopinath will be its vice-chairman.

What is the expected range for the share swap ratio? With combined accumulated losses of around Rs 2, crore Rs 20 billionthe new entity created by the merger of unlisted Kingfisher Airlines with Deccan Aviation will have many strengths, but its balance sheet will not be one kjngfisher them. Jetstar Asia, a no-frills carrier promoted by Qantas, was successful initially, but is now struggling to expand.