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Deccan-Kingfisher merged entity to raise $250 m for capex
The merged entity of Deccan Aviation and Kingfisher Airlines plans to raise funds of upwards of $250 million through equity for its capex needs, reports Business Line.
Mr Nedungadi said Kingfisher Airlines has posted a small profit during December while Deccan Aviation had dramatically reduced its losses since the merger. "Even though November-December are the peak months, we are beginning to see the traction of the two airlines operating together," he said. He added that even after the merger, there will be no change in the character of Deccan. "The idea is not to change the character of Deccan. It is not to see that the traveller is paying more money than what he was doing earlier," he said.
Mr Nedungadi pointed out that it was important for the merged entity to see how the net worth is utilised far more intelligently. He said the both the airlines together should be able to offer customers a far better product than that was possible when the airlines were two separate entities. "We want to offer customers the right product at the right time of the day on each of the sectors."
He said the merged entity will now be able to use the enormous network it has more efficiently while revenue implications are also far more significant than they were earlier. He said that Deccan has also come to an agreement with Airbus where two of its aircraft production slots are being sold to another entity at a good premium.
Mr Nedungadi said that Kingfisher Airlines will start its international operations from August. The airline will operate daily flights between Bangalore-San Francisco and Bangalore-New York.
