Kingfisher, Deccan Airways agree to merge

Manipal,Karnataka, Feb 1 (UNI) The Kingfisher Airlines and Deccan Airways have finally decided to merge.

Deccan Airways Executive Chairman G R Gopinath told the press on the sidelines of a function, a board meeting with representatives from both the airlines held in Bangalore yesterday had passed the resolution to the effect.

Two valuators attending the meeting from both sides were working on the shareholding and assets of the new entity, he said.

''The Board has agreed to merge Kingfisher with Deccan Airways.'' Capt Gopinath said.

Though it is yet to fully work out 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 shares of Kingfisher will be equal to one share of Deccan Airlines.

To a query, Capt Gopinath clarified it will take two to three months to complete the process of the merger.

The airlines will be functioning separately under single entity and Mr Vijay Mallya, Chairman of Kingfisher, will become the Chairman of the new entity and he will be the Vice-Chairman.

The Deccan Helicopter Wing would also keep its separate identity with Capt Gopinath) continuing as Chairman and Chief Executive Officer. Mr Mallya would be the Vice-Chairman.

The existing low-cost airline service by Deccan Airways will continue even after merger, he said.

To another query, Capt Gopinath said 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 quipped.

UNI MA SIV SY DS1206