Deccan, Kingfisher to operate separately post-merger: Gopinath

Air Deccan will continue to run as a low cost carrier and operate as a separate entity...

Air Deccan will continue to run as a low cost carrier and operate as a separate entity even post-merger with Vijay Mallya8217;s Kingfisher Airlines, Deccan Aviation executive chairman Captain Gopinath said today. 8220;Deccan will continue to operate as a low-cost carrier and even after a fare hike in the event of fuel surcharge increase, it will still be a low cost carrier.

Deccan has been a household name since its inception two years back and to attain synergies in operation, post-merger Kingfisher will operate as a premier carrier and Deccan as low fare airline,8221; Gopinath added.

Vijay Mallya8217;s United Breweries Group, which also runs Kingfisher Airlines, had acquired a 26 per cent stake in Deccan Aviation for Rs 550 crore and has now hiked up its stake to 46 per cent after buying shares in an open market. 8220;The two airlines will be operative as two separate entities and we will only concentrate on rebranding the two carriers. We are presently focusing on integrating the resources of the two firms,8221; added Gopinath. However, the benefits of the synergy would be visible only after 3-6 months.

Last month the airline had appointed management consultancy firm Accenture to study the possibility of integrating the operations of the entities. 8220;Accenture is expected to come out with the report in two months, after which we will be able to comment on the merger issue,8221; Gopinath informed.

The study would look into areas like integrating manpower and elimination of duplication of manpower and services. Effective deployment of personnel and looking at the services offered at various points would also be studied.

Deccan will also be part of the consortium with real estate major Raheja Group, IDFC and the GVK Group running the Mumbai airport to bid for low cost airports in Karnataka, Andhra Pradesh and Maharashtra. Expressions of Interest EoIs have already been invited for the Maharashtra airports and two international players have also bid for it.