Kingfisher and Deccan Airways agree to merge

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Manipal (Karnataka), Feb 1: The Kingfisher Airlines and Deccan Airways which have come together finally decided to merge to become a giant Airline operator in India. Executive Chairman of Deccan Airways Capt G R Gopinath told press persons on the sidelines of a function that the Board meeting comprising of the representatives from both the airlines held in Bangalore yesterday had passed the resolution to this effect.

Two valuators attending the meeting from both sides are working out the shareholding and assets of the new entity, he said. "The Board has agreed to merge Kingfisher with Deccan Airways." he said. Though it is yet to fully workout on the equity holding by two companies in the new set up, it will be approximately in the ratio of 35: 65 respectively, he said adding the value of every two and half share of Kingfisher will be equal to one share of Deccan Airlines. Replying a query, Capt Gopinath clarified it will take two to three months to complete the process of the merger of the two companies.

Airlines will be functioning separately under single entity and Mr Vijay Mallya, Chairman of Kingfisher will become the Chairman of the new entity, he said. Capt Gopinath said he will be the Vice-Chairman. He further clarified that Deccan Helicopter wing would also keep its separate identity and himself (Capt Gopinath) would continue as Chairman and Chief Executive Officer and Mr Mallya would be the Vice-Chairman.

The existing low-cost airline service by Deccan Airways will continue even after merger, he said. Replying to another query, Capt Gopinath said that his company needed more capital.

"We needed capital to make the entity big so that we can exploit the ever growing aviation market. I know what is good for the country and we are moving in the right direction', he said.


UNI

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