Kingfisher and Deccan Merger

THE MERGER DEAL ---------------------------- Gopinath launched Air Deccan four years ago, triggering a terms war aimed at making flying cheap to the average Indian. Kingfisher Airlines control panel had approved plans to buy a 26 percent chance in Air Deccan for 5.5 one thousand thousand rupees (US$135 million; euro100 million). This allow provide much mandatory consolidation in the fast developing Indian aviation industry, which aircraft manufacturers are looking at as wizard of the some promising in the world. A 26 percent berth would repair the UB Group the largest takeholder of Air Deccan. chthonian Indian tune market rules the group must extend to an expand shot to buy at least an new(prenominal)(prenominal) 20 percent from other shareholders. The Bangalore-based group has said it would make an open offer a neverthelessting week and pay 155 rupees per share to acquire 35.22 million shares of Deccan airmanship Ltd. that operates Air Deccan. The tw o airlines deem a diametrically different approach. Kingfisher tar survives the well-heeled passenger and fear traveler with promises of indulge customers with quality, full-flight service, while Air Deccans vision is to authorise every Indian to fly.

MERGER BENEFITS �� Kingfisher Airlines and Deccan Aviation will stay fresh Rs ccc crore in the first full year of operation by working together �� The savings would come from a commonality sacramental manduction of engineering services, spares, employees, pilots, other crew, and ground-handling facilities. �� The combined tax of Kingfisher and Air Deccan ! airlines in FY07-08 is estimated at Rs 6,000 crore. �� A net go on in Deccan Aviation is also expected soon. Kingfisher was expected to make an operational profit in FY08 and net profit in FY09. �� Together, the two airlines banknote for 50 % of the deployed capacity of south India. �� For the conviction being, the two airlines will bear upon to be run independently, but would work out an optimal thoroughfare strategy,...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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