The Hindu Business Line : ‘Deccan’ soon to go off from the skies

Mumbai, March 27 The ‘Deccan’ brand is likely to be extinguished once the merger of Deccan Aviation and Kingfisher Airlines is completed, quite in reversal of what was last said on the matter.

“Deccan will cease to exist as the merger process is about to be completed,” Mr Vijay Mallya, Chairman of United Breweries’ group-owned Kingfisher Airlines, said on Thursday.

While he did not elaborate on the brand as it were, a person with knowledge of developments in the low-cost carrier told Business Line that the name of Deccan would be changed after merger procedures are over.

It may be recalled that in December last year at the time of the approval of merger by the boards of both companies; Capt Gopinath, Deccan Aviation’s Chairman had said that brand Deccan would continue to remain even after the merger with Kingfisher Airlines.

He was unavailable for comment on the new development. Capt Gopinath would be a director in the merged entity, most likely in the Vice-Chairman’s post.

Air Deccan is widely regarded to have pioneered the low-cost carrier model for the Indian aviation industry. It was re-branded as ‘Simplifly Deccan’ sometime back, when its interiors, livery and other aspects had also been changed.

Elaborating on the development, Mr Ravi Nedungadi, President and Chief Financial Officer of UB Group, said, “While there will be no change in the low-cost model of Deccan, we will decide on whether to keep the name (for the low-cost service) or change it in another two to three months. It is not a corporate decision and would depend on the surveys regarding the brand in the market.”

The Karnataka High Court has convened a meeting on April 17 for the merger of Kingfisher Airlines and Deccan Aviation, Mr Mallya told a group of journalists in Baramati on the occasion of first grape crushing of the season at his winery on Thursday.

Late last year, Kingfisher Airlines picked up a 26 per cent stake in Deccan Aviation for Rs 550 crore and made an open offer for 20 per cent stake taking its holding to 46 per cent. After the stock ratio is finalised, UB Holdings will have in excess of 51 per cent in the merged entity.

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