Kingfisher to fly abroad on Deccan's ticket
Vijay Mallya, the new leader in domestic skies, will fly international routes under Kingfisher and Deccan brands from 2008. Bangalore’s new airport
By TNN |
BANGALORE / MUMBAI: Vijay Mallya, the new leader in domestic skies, will fly international routes under Kingfisher and Deccan brands from the next calendar year.
Putting to rest speculation whether he will be able operate Kingfisher brand internationally, UB Group chairman Mallya said: “There has been confusion around this, and I would like to clarify that Deccan Aviation will also do businesses as Kingfisher Airlines by 2008. The government rules says the operator or the company has to complete five years, but it does not talk about logo, or aircraft livery or brand.”
In fact, Kingfisher is finalising parking bays and time slots for itself at New York and San Francisco airports. The airline is also booking space for operating exclusive lounges in these international hubs, Mr Mallya told ET.
He was categorical that UB Holdings Ltd’s 46% stake in Deccan Aviation would allow him to use the latter’s entitlement to fly overseas with Kingfisher brand.
Accenture which has been entrusted to work on ways to unlock synergies between the Deccan and Kingfisher, including a possible merger, will also look into mapping of potential international routes for both the airlines.
Deccan completes five years of domestic service in July-August 2008, meeting the requirement to start international operations.
Kingfisher Airlines is expected to see the arrival of the five A340 aircraft between March to August next year to kick-off international operations. The airline has also placed orders for five A330s and five A350s to support its overseas plans. Till date it is the first domestic carrier to place orders for five A380 aircraft.
Mr Mallya said Kingfisher-Deccan combine was reworking its capacity build up plans, as the domestic aviation sector was beefing up capacities ahead of industry growth figures. “We would rather focus on filling up existing capacities with higher yields,” he added.
UB Holdings Ltd’s aviation vertical is likely to raise upwards of $200 million sometime mid next year, a company official said. It could be through a follow-on public offer, if Deccan-Kingfisher merger goes through, or convertible bonds or through private placement.
Accenture, which is working on synergy possibilities between the two airlines, is likely to table its report to UB Holdings by December first. A final decision on the possible merger of the two carriers will be taken thereafter.
Putting to rest speculation whether he will be able operate Kingfisher brand internationally, UB Group chairman Mallya said: “There has been confusion around this, and I would like to clarify that Deccan Aviation will also do businesses as Kingfisher Airlines by 2008. The government rules says the operator or the company has to complete five years, but it does not talk about logo, or aircraft livery or brand.”
In fact, Kingfisher is finalising parking bays and time slots for itself at New York and San Francisco airports. The airline is also booking space for operating exclusive lounges in these international hubs, Mr Mallya told ET.
He was categorical that UB Holdings Ltd’s 46% stake in Deccan Aviation would allow him to use the latter’s entitlement to fly overseas with Kingfisher brand.
Accenture which has been entrusted to work on ways to unlock synergies between the Deccan and Kingfisher, including a possible merger, will also look into mapping of potential international routes for both the airlines.
Deccan completes five years of domestic service in July-August 2008, meeting the requirement to start international operations.
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It is believed that UB will operate its long haul international flights to the US and UK under Kingfisher while low-cost destinations to the Middle East and South Asian markets are likely to be covered by Deccan. In fact, Kingfisher Airlines is in the process of firming up plans for launching non-stop flights to San Francisco, New York and London from Bangalore, Mumbai and Delhi early next year. The airline also plans to connect Los Angeles and Canada as well. Kingfisher Airlines is expected to see the arrival of the five A340 aircraft between March to August next year to kick-off international operations. The airline has also placed orders for five A330s and five A350s to support its overseas plans. Till date it is the first domestic carrier to place orders for five A380 aircraft.
Mr Mallya said Kingfisher-Deccan combine was reworking its capacity build up plans, as the domestic aviation sector was beefing up capacities ahead of industry growth figures. “We would rather focus on filling up existing capacities with higher yields,” he added.
UB Holdings Ltd’s aviation vertical is likely to raise upwards of $200 million sometime mid next year, a company official said. It could be through a follow-on public offer, if Deccan-Kingfisher merger goes through, or convertible bonds or through private placement.
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Meanwhile, addressing the company shareholders, Mr Mallya indicated that the combined valuation of Deccan-Kingfisher could be around $1.25 billion currently. Deccan stock, which has been soaring on hopes on a reverse merger with Kingfisher Airlines is quoting at Rs 244 giving the counter a mcap of $850 million.Accenture, which is working on synergy possibilities between the two airlines, is likely to table its report to UB Holdings by December first. A final decision on the possible merger of the two carriers will be taken thereafter.
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