Jet Airways bought Air Sahara. Air India and Indian Airlines are merging to form National Aviation company & will probably retain the Air India brand name. Thulasidas is slated to head the mega-airline. There is talk of consolidation all around.
What next? Kingfisher has been looking for scale. Vijay Mallya bid for Air Sahara, but backed out when he found it too pricey. However, despite his withdrawal, the benefits of
consolidation remain too large to be ignored. Which has led to talks that he may be willing to buy Air Deccan. The two airlines are at two opposite poles, on almost everything. Mallya seeks to indulge you in a premium aircraft, while Gopinath tells you that whatever you are getting on his airline is the best you can get for that price - so shut up and keep flying. While Kingfisher looks for premium passengers, Air Deccan looks at the bottom of the pyramid.
But the rumors haven't gone away. Air Deccan is in desperate need of money. Anil Ambani's Reliance is believed to have bid for a 26% stake in Deccan for 100 million dollars. And now comes news that the original promoter of Air Deccan is eager to get out. Will Mallya step in?
Last week, NDTV 24X7 reported that the two airlines were in talks. Could be, both airline heads are good friends, but they may not have been talking merger. Any case, Air Deccan clarified that Kingfisher has not made any bid so far.
A Kingfisher-Deccan combine may overtake Jet Airways with a 38% market share. Though Air Deccan has laid the matter to rest, we believe it is hardly the last word on consolidation. To survive and compete, airlines will need to come together. Earlier the better. Before Air-India Indian Airlines merged entity takes to skies.
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What next? Kingfisher has been looking for scale. Vijay Mallya bid for Air Sahara, but backed out when he found it too pricey. However, despite his withdrawal, the benefits of
consolidation remain too large to be ignored. Which has led to talks that he may be willing to buy Air Deccan. The two airlines are at two opposite poles, on almost everything. Mallya seeks to indulge you in a premium aircraft, while Gopinath tells you that whatever you are getting on his airline is the best you can get for that price - so shut up and keep flying. While Kingfisher looks for premium passengers, Air Deccan looks at the bottom of the pyramid.
But the rumors haven't gone away. Air Deccan is in desperate need of money. Anil Ambani's Reliance is believed to have bid for a 26% stake in Deccan for 100 million dollars. And now comes news that the original promoter of Air Deccan is eager to get out. Will Mallya step in?
Last week, NDTV 24X7 reported that the two airlines were in talks. Could be, both airline heads are good friends, but they may not have been talking merger. Any case, Air Deccan clarified that Kingfisher has not made any bid so far.
A Kingfisher-Deccan combine may overtake Jet Airways with a 38% market share. Though Air Deccan has laid the matter to rest, we believe it is hardly the last word on consolidation. To survive and compete, airlines will need to come together. Earlier the better. Before Air-India Indian Airlines merged entity takes to skies.
Discuss
Add this link to...
Tell a friend
Bury
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