Merger of Kingfisher and Air Deccan Intr – Free download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online for free. 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. Vijay Mallya bought Air Deccan with his eyes closed. Kingfisher Airlines was once the toast of wealthy Indians who found never-before.
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Annual financial reports, http: And the SBI-led lending consortium of 17 banks can really have no fig leaf to hide its inept handling of the Kingfisher loan portfolio. Mergers are called amalgamations, while Zir are acquisition of a part of equity capital of a company that enables kingcisher acquirer to exercise control over the affairs of the company.
Vijay Mallya bought Air Deccan with his eyes closed. It looked as if some seccan the banks had extended loan to the airline based on Mallya’s popularity and charisma rather than the real worth of the airline. Experts say it’s important to run the two airlines separately as they have different cost bases and pricing strategies. Also See Troubles mount for Vijay Mallya: Airline experts say Mallya has a tough job on his hands.
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After extradition setback, liquor baron set to face bankruptcy proceedings in UK High Court. Which is why he’s been trying to blur the differences with the makeover of Deccan.
The combined entity will also need large capital infusion kingfisehr the proposed international forays by the two brands. It was chosen in May to emphasise Simplifly Deccan’s goal to make air travel more accessible. If Air Deccan was positioned for the masses, Kingfisher Airlines is unabashedly for the classes.
Archived from the original on 19 December And no one – not lenders who were skeptical, not other airline veterans nor close associates – would dissaude Mallya senior from taking the plunge. New Zealand beat Sri Lanka by runs.
Air Deccan would be eligible to fly abroad from Aviation Consolidation Looming In India: When the airline started defaulting on repayment, some of the banks had very little as collateral to fall back upon”.
Retrieved 26 July Byapart from other problems, caterers were unwilling to supply meals on some flights because of non-payment by Kingfisher. Bandersnatch review — Netflix’s interactive episode will make you question the concept of choice. Massachusetts Institute of Technology.
It also employed several kinggfisher methods to ensure the profitability of its business model. Retrieved 15 June Jetstar Asia, a no-frills carrier promoted by Qantas, was successful initially, but is now struggling to expand. This page was last edited on 5 Decemberat Vijay Mallya holds Call for Papers – Entrepreneurship.
Kingfisher to merge with Air Deccan | Business Standard News
Given that Deccan acquired its aircraft at a cheaper price than Kingfisher did, it should not be a surprise kingfishef Mallya one day says no-frills airlines won’t decccan in India and we will have just one airline, Kingfisher Airlines. It had bases at seven Indian cities: The former livery consisted of a fading blue cheatline and, on the tail, a blue circle with two yellow hands joined at the thumb like the wings of a bird.
Article Andd Print this article. Gopinath claimed he wanted to make air travel accessible to every Indian. 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.
The consortium has to recover almost Rs crore from a defunct airline, with almost no collateral! Inwhen it started its operations, losses were about Rs crore Rs 2. Simplifly Deccan ended the practice of outsourcing check-in staff, lengthened turnaround times and stopped selling tickets at promotional fares.
While actual numbers are hard to come by for Kingfisher, it is estimated to have lost Rs crore Rs 5.
Kingfisher to merge with Air Deccan
The inside story of Vijay Mallya’s tumble: The group’s backing is a pillar for us,” he had said. The Times of India. A pint of beer at a five-star costs as much as Rs but the kinffisher front desks at airports would grudgingly foot the bill. Annual reportKingfisher Airlines Limitedp. Retrieved 18 June But hard business sense points out that it is not the case. Following its no-frills approach, it charged for all food and beverages served on board.
Scarce manpower can be optimally utilised, insurance premium and lease rentals can be re-negotiated, infrastructure like engineering, ground handling, training can be combined. Or was the aviation business, with its huge overheads, thin margins and heavy Government taxation anyway a recipe for disaster?
Experts favour Kingfisher-Air Deccan merger
OutlookReport releasedMarch 7,accessed on January 10,www. Amd inAir Deccan brought a revolution in air travel, making air travel in India an affordable proposition for the common man. In this book Giriprakash tries to sketch the man called Mallya. Was Mallya the only one at fault for taking Kingfisher Airlines down?