Friday, December 21, 2007

All Set to Fly?

69 cities. 76 aircrafts. 570 daily flights. This is going to be India's largest ever airline. Courtesy Vijay 'Kingfisher' Mallya, the king of good times.

Accenture, the well known consultancy firm has suggested a merger of the newly redesigned Simplifly Deccan with the UB group's Kingfisher airlines. The merger is expected to take place soon and may be complete by the coming March. We know, the common man's airline, Air Deccan was taken up by the UB group recently and major changes were made to change the image and overall feel of the airline.

With the merger of the two airlines, Kingfisher will be able to fly abroad also as according to the aviation's rules, airlines need to fly for a certain period in only domestic skies before they can fly in international skies, and Deccan has the required amount of experience as it had come considerably earlier in the market.

Also, the losses of the companies, 1200 cr for the Kingfisher and 800 cr of Deccan can be better controlled, experts say.

And according to tax experts (read manipulators), it is possible to have a clever deal of the two companies, too, which will profit the companies.


But here comes the question. What will happen to the prices of Deccan when it becomes Kingfisher? Will the common man's flyer Deccan be out of common man's reach now or 'the King' Mallya will keep at the same price band where it is today, is the question which is yet to be answered.

In any case, there is nothing to really worry about. Except that the common man who taught us to fly will not be flying with many of us anymore, if Deccan prices become that of Kingfisher. Because today we have a two digit number of domestic carriers operating in India many of which provide equally cheap tickets as Deccan.


So don't worry, just tighten your seat belts. Happy flying. :)

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