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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How to Meet the Store Brand Challenge views since: Mallya’s most audacious and also the most faulted mergr has been Kingfisher Airlines, which stopped flying inwith huge unpaid loans to banks, months of salary arrears to employees and very little hope of the mwrger ever reviving.
Aviation consolidation looming in India: New Zealand beat Sri Lanka by runs. Archived from the original on 29 March We have created a revolution ‘ “. Pro-democracy icon turned iron lady, Awami League leader oversaw 10 years of economic growth. A pint of beer at a five-star costs as much as Rs but the airline front desks at airports would grudgingly foot the bill.
And no one – not lenders who were skeptical, not other airline veterans nor close associates – would dissaude Mallya senior from taking the plunge. Following its no-frills approach, it charged for all food and beverages served on board. Vijay Mallya bought Air Deccan with his eyes closed. Views Read Edit View history. This study is, therefore, an attempt to elucidate the strategic moves made by the acquirer – Vijay Mallya to restructure decccan reposition merget erstwhile Air Deccan into a new combined entity – Kingfisher Red.
At least that is what the book, called “The Vijay Mallya story” suggests.
Kingfisher-Deccan merger: Will it work?
Some kingfishe snippets from the book: Simplifly Deccan and Kingfisher continued to operate domestically with their own airline codes. Whenever they have tried to merge or work together under one umbrella, they have nearly failed.
New Year flushed with promise world over, but Kashmir stares at another period of gloom amid gunfights and clashes. If Air Deccan was positioned for the masses, Kingfisher Airlines is unabashedly for the classes.
Experts favour Kingfisher-Air Deccan merger
Given that Deccan acquired its aircraft at a cheaper price than Kingfisher did, it should not be a surprise if Mallya one day says no-frills airlines won’t work in India and we will have just one airline, Kingfisher Airlines. Now, even the Kingfisher brand has been put up for sale by banks, which anyway seem clueless on how to recover their money. The inside story of Vijay Mallya’s tumble: Troubles mount for Vijay Mallya: The air hostesses were trying their best to manage the situation.
According to sources, the merged airline will look at equity rather than debt to raise funds going forward. Kingfisher Airlines and Air Deccan can access ground infrastructure at 65 airports, of which 28 are common. Mixing everything in one company doesn’t work.
Simplifly Deccan – Wikipedia
Vijay Mallya holds Scarce manpower can be optimally utilised, insurance premium and lease rentals can be re-negotiated, infrastructure like engineering, ground handling, training can be combined. Unless the airlines consolidated under a single set of codes, the Ministry of Civil Aviation required Kingfisher to use Deccan’s codes on international routes; Mallya, on the other hand, wanted to use Kingfisher’s codes.
Archived from the original on 10 August 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.
This, despite the fact that these were subsidiaries, whose operations were independently managed. In the end, Giriprakash points out the obvious.
Order Reprints The reprints meregr this article are available at the rate of Rs.
Bandersnatch review — Netflix’s interactive episode will make you question the concept of choice. Archived from the original on 8 August Was Mallya the only one at fault for taking Kingfisher Airlines down?
The inside story of Vijay Mallya’s tumble: He bought Deccan with eyes closed
Pro-democracy icon turned iron lady, Awami League leader oversaw 10 years of economic growth New Year flushed with promise world over, but Kashmir stares at another period of gloom amid gunfights and clashes BSP seeks withdrawal of cases filed during Bharat Bandh, threatens to withdraw support to Congress in MP, Rajasthan First half of decacn to be volatile, but stronger macros signal positive equity market move Black Mirror: Blue Dart Aviation Quikjet Airlines.
OutlookReport releasedMarch 7,accessed on January 10,www. With commonality of fleet Airbus we intend sharing of resources, aircraft spares, airport infrastructure such as X-ray machines, conveyer belts, step ladders.
When some reporter asked him whether that meant the deal had been made without any due diligence or checking the balance sheet, Captain Gopinath replied that it was true that during the negotiations, neither Mallya nor his officials ever asked to examine the books. Strategic Management and Business Policy 3rd ed. As the airline’s losses continued to mount, it was forced to sell a 26 per cent stake to Vijay Mallya for Rs crore Rs 5.
Archived PDF from the original on 14 November Archived from the original on 13 August It has been seen for many years that it doesn’t work,” said an industry expert. After extradition setback, liquor baron set to face bankruptcy proceedings in UK High Court. Strangely, a day qir Vijay Mallya announced his plan to merge Kingfisher into Deccan, the budget carrier’s stock fell more than six per cent to Rseven as the BSE Sensex gained At the time it ceased operations, Simplifly Deccan flew to 52 destinations across India.
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 The meerger has to recover almost Rs crore from a defunct airline, with almost no collateral! References Mergers are called amalgamations, while Takeovers are acquisition of a part of equity capital of a company that enables the acquirer to exercise control over the affairs of the company.