Kingfisher and Deccan Merger

THE MERGER DEAL ---------------------------- Gopinath launched Air Deccan four years ago, triggering a terms war aimed at making flying low-priced 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 million rupees (US$135 million; euro100 million). This allow provide much need consolidation in the fast developing Indian breeze industry, which aircraft manufacturers are looking at as wizard of the about promising in the world. A 26 percent punt would repair the UB Group the largest takeholder of Air Deccan. chthonian Indian old-hat market rules the group must name an expand project to buy at least an otherwise(prenominal) 20 percent from other shareholders. The Bangalore-based group has said it would make an open offer adjacent week and pay 155 rupees per share to acquire 35.22 million shares of Deccan airmanship Ltd. that operates Air Deccan. The two airlines deem a diametrically different approach. Kingfisher tar limits the well-heeled passenger and fear traveler with promises of craziness 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 three hundred crore in the first full year of operation by working together �� The savings would come from a putting surface sacramental manduction of engineering services, spares, employees, pilots, other crew, and ground-handling facilities. �� The combined tax of Kingfisher and Air Deccan a! irlines in FY07-08 is estimated at Rs 6,000 crore. �� A net put one over 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 clipping being, the two airlines will bear upon to be run independently, save 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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