By IANS
New Delhi : Air Deccan, one of India’s leading low-cost carriers, is to maintain its operations and business image as a low-cost airline even after its proposed merger with Kingfisher is implemented, chairman G.R. Gopinath said here Wednesday.
“We will continue to be different brands, entities and products. Kingfisher will continue to be a full-service carrier while Deccan will be on the other side of the spectrum,” Gopinath told reporters at an event.
“Otherwise, such a large amount of money would not be spent on the re-branding exercise,” he added.
Accenture, a global consultancy firm, will soon give its report on the formal merger and route rationalisation in domestic and overseas sectors for Air Deccan and Kingfisher Airlines.
“The report will be studied by Mallya and myself and then by the board of directors. Only then will a decision be taken on the issue,” Gopinath said.
The formal merger is important for Kingfisher since it would pave the way for Mallya’s carrier to fly overseas by fulfilling a government requirement of a carrier having flown for at least five years in the domestic sector, with a minimum fleet size of 20 aircraft.
Kingfisher officials told IANS earlier that the airline had sought permission from the Directorate General of Civil Aviation for 40 routes that include the US, the Middle East and South East Asia.
According to sources, Air Deccan received its Air Operators Permit in January 2003 and the government has already given the carrier an in-principle nod to fly overseas.
On May 31, Vijay Mallya-owned United Breweries Holdings acquired 26 percent stake in Air Deccan for Rs.5.5 billion.
On the issue of surging costs of aviation turbine fuel, Gopinath indicated that this might lead to hike in the ticket prices.