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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Bangalore Delhi Kolkata Mumbai. Archived from the original on 27 August Air Deccan also gained advertising revenue by allowing advertisements both inside and outside its aircraft.

Sheikh Hasina wins 3rd term mergre PM in Bangladesh: Laxman ‘s The Common Manwas often incorporated into the seccan livery. Archived from the original on 17 November OutlookReport releasedMarch 7,accessed on January 10,www. Archived from the original on 21 March Blue Dart Aviation Quikjet Airlines. Pro-democracy icon turned iron lady, Awami League leader oversaw 10 years of economic growth.

Air Deccan, which has been struggling with growing losses ever since it started, is running out of cash almost as soon as it raises it.

The inside story of Vijay Mallya’s tumble: He bought Deccan with eyes closed

Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in It is the humble cleaning women of my office, the auto-rickshaw driver and other such people that we would like to cater to. Kingfisher was to be a gift to son Siddharth Mallya on his eighteenth birthday on May 7, It was chosen in May to emphasise Simplifly Deccan’s mergeer to make air travel more accessible.


Order Reprints The reprints of this article are available at the rate of Rs. Massachusetts Institute of Technology.

Kingfisher-Deccan merger: Will it work?

His team never went through the books of the loss making Air Deccan before Mallya agreed to buy it for a total consideration of Rs crore in It had bases at seven Indian cities: History is not on Mallya’s side.

Written by senior journalist K Giriprakash, the book also speaks of how Mallya rushed into the airline business with Kingfisher Airlines, despite his close associates warning against the move.

He also wanted to give the airline a premium touch while it remained a low-cost carrier. Furthermore, as the merger story unfolds, it brings out the truism of consolidation – that one man’s gain is another man’s loss.

On such occasions, the passengers had demanded that the pilot give them an explanation in person. There are some hilarious instances, some which reveal shocking inattention to detail and still some others which show why Vijay Mallya was never going to succeed in the airline business.

Experts favour Kingfisher-Air Deccan merger – News18

At the time it ceased operations, Simplifly Deccan flew to 52 destinations across India. Archived from the original on 13 August Experts say the Qantas model worked because Jetstar’s operation was independent. That Mallya had everyone rooting for him when he began Kingfisher. New Year flushed with promise world over, but Kashmir stares at another period of gloom amid gunfights and clashes. For aand airline with a similar name founded insee Air Deccan.

This, despite the fact that these were subsidiaries, whose operations were independently managed. 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.


Retrieved 18 June Scarce manpower can be optimally utilised, insurance premium and lease rentals can be re-negotiated, infrastructure like engineering, ground handling, training can be combined.

Nevertheless, Simplifly Deccan suffered high losses and merged with Kingfisher Airlines in April Archived from the original on 22 June aie Gopinatha retired Indian Army captain who had gained experience in the aviation industry through his Deccan Aviation venture.

The Times of India. Archived from the original PDF on 23 January Air Deccan was the first low-cost carrier in India. Kingfisher Airlines was once the toast of wealthy Indians who found never-before quality of service and class with the airline. With combined accumulated losses of around Rs 2, crore Rs 20 billionthe new entity created by the merger of unlisted Kingfisher Kingfishfr with Deccan Aviation will have many strengths, but its balance sheet kingfisyer not be one of them. Byapart from other problems, caterers were unwilling to supply meals on some flights because of non-payment by Kingfisher.

The consortium has kintfisher recover mergeg Rs crore from a defunct airline, with almost no collateral! OutlookReport released, March 7,accessed on January 10, www. The airline appealed to middle class travellers with low fares and a large route network. Article Tools Print this article. Started inAir Deccan brought a revolution in air travel, making air travel in India an affordable proposition for the common man.

But he squandered away this immense goodwill.