India´s low-cost airline Deccan is to merge with Kingfisher Airlines next year. (12/20/2007)
The merged entity will operate under the name Kingfisher, the flagship beer brand of UB Group. "The merger will bring about synergies across the board and lower the cost of operating both the airlines," Deccan founder G.R. Gopinath said.
The boards of the two private airlines at a joint meeting unanimously decided after management consulting firm Accenture in its report recommended their merger for greater operational and marketing synergies. Details of Deccan-Kingfisher merger, valuations and swap ratio will be worked out by accountancy firm KPMG.
Vijay Mallya would be the chairman and CEO of the merged entity, while executive chairman of Deccan, Captain G R Gopinath would be the vice-chairman.UB Holdings held a 46% stake in Deccan prior to the merger decision, and Mallya said the merged entity would be majority-owned by UB Holdings.
The two airlines plan to combine in about three months after securing regulatory and shareholder approvals, said Gopinath.
Kingfisher Airlines-Deccan to merge