By IANS
New Delhi : The Vijay Mallya-promoted UB Group is planning to fly either Kingfisher Airlines or Air Deccan, in which it recently acquired a stake, to San Francisco and New York from Bangalore by April next year.
“We are planning to start direct non-stop flights from Bangalore to San Francisco and New York by April next year,” Kingfisher Airlines Chairman and Managing Director Vijay Mallya said here, adding that the company has already filed an application with the American Department of Transportation for this.
However, according to Indian aviation rules any operator not more than five years old is not permitted to operate its flights overseas. This, however, has been time and again challenged by the private carriers to survive the growing competition in the industry.
“If the norms are not relaxed, we will only fly Air Deccan as it will become five years old in 2008,” Mallya told reporters on the sidelines of a marketing conference by Confederation of Indian Industry (CII).
The liquor baron, who acquired a 26 percent stake in Air Deccan in June this year for Rs.5.5 billion, also indicated that he might up his stake for an additional 20 percent in the low-cost carrier by making an open offer.
“We would make an open offer (to Air Deccan), however, it could not be made until we have funds in place … I would not hesitate to increase the ownership to 51 percent or more,” Mallya said.
Earlier, this month the offer was delayed by the Securities and Exchange Board of India (SEBI) as it raised questions on funding.
About giving a makeover to Air Deccan, Mallya said: “Air Deccan does not need re-branding. However, we would make changes that are required to make it the most efficient low-cost carrier in the country.”
In the meantime, Air Deccan’s managing director G.R. Gopinath said that the airliner would be making profits by the first quarter of fiscal 2008-09 and it is also planning to increase ticket fares by Rs.500-1,000.