NEW DELHI: Deccan Aviation, the low cost carrier in which UB Group has picked up 46 per cent stake, on Wednesday said Kingfisher and Deccan will run as two separate brands even when the two airlines are merged.

“The two airlines will be operative as two separate entity and we will only concentrate on rebranding the two carriers,” Deccan Aviation Executive Chairman Captain Gopinath told reporters here.

Earlier this year, the UB Group had acquired 26 per cent stake in Deccan Aviation for Rs 550 crore. The group has now increased its stake to 46 per cent by buying shares in an open offer.

Vijay Mallya led UB Group would run as full service airlines post merger and Deccan would operate as a low cost carrier.

“Deccan has been a household name since its inception two years back and to attain synergy in operation, post merger Kingfisher will operate as a premier carrier and Deccan as low fare airline,” Gopinath said.

Last month the airline had appointed management consultancy firm Accenture to study the possibility of integrating the operations of the entities.

“We are presently focusing on integrating the resources of the two firms. Accenture is expected to come out with the report within two months, after which we will be able to comment on the merger issue,” Gopinath added.

However, the benefits of the synergy would be visible only after 3-6 months, he said.
source: The Economic Times

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