Liquor baron and MP Vijay Mallya is considering a merger of Air Deccan and Kingfisher. This comes in the wake of Kingfisher’s acquisition of a majority stake in Air Deccan. The two carriers have a combined fleet of 71 aircraft that fly to 70 destinations.

In the domestic sector, the two have about 33 per cent market share.

Mallya’s aim is fleet optimization and to that end, he is looking at ways not just to bring costs down but also to fly international routes and has roped in Accenture to explore all the options.

Accenture, which had also worked on the Air India – Indian Airlines merger, is also slated to study the option of a full merger Kingfisher and Air Deccan.

“Kingfisher and Deccan will both fly overseas in 2008 and part of the route network is being planned by Accenture, as a part of their overall study,” said Mallya.

“This will enable us to improve our capacity utilisation once more, and also go into more revenue generative routes than what we currently experience on some routes in our country.”
source: CNN-IBN

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