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karatecatman Guest
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Posted: Mon Apr 30, 2007 2:41 pm Post subject: Mallya and Gopinath back on the negotiating table? |
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Are Mallya and Gopinath back on the negotiating table? CNBC-TV18 says that Kingfisher Airlines may be interested in picking up a stake in Air Deccan. And Gopinath has put about 15% stake on the block. He is looking at raising between USD 50 and USD 100 million for the airline.
CNBC-TV18 has learnt that the two strong contenders for this stake are the Texas Pacific Group and Kingfisher Airlines. However, both Mallya and Gopinath deny talking to each other at this stage.
But the logic for the two to come together is eminent, especially after Jet has decided to convert Sahara into a budget carrier. So will it be two big titans clashing in the sky - two giants fighting it out for the premium and the budget traveler? Jet, the premium carrier with JetLite its budget arm on the one hand and Kingfisher, the full service airline with Deccan as its leaner version on the other - the arrangement could work well.
Jet along with JetLite will commands a market share of 33%, while Kingfisher with Deccan will come close at about 30%. Industry players say the growth in India will come in both segments - premium as well as budget; so it will benefit both Kingfisher and Deccan if they join hands. |
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malQ Member
Joined: 20 Dec 2006 Posts: 713 Location: Delhi, India
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Posted: Mon Apr 30, 2007 2:55 pm Post subject: |
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I think a scenario where UB invests in Air Deccan, and Gopinath ends up managing the operations of both the entities, will be a very successful win-win for both. Especially if that brings in efficiencies of operation of what is essentially a very similar fleet.
I would love to fly Air Deccan, but only if they provide pre-boarding seat assignments, even if it is only for aisle seats. As a matter of fact, they can charge extra for it, I would pay 100/- rupees extra for aisle seats if they guaranteed one!! That way I could board last also, after the rush. |
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the_380 Member
Joined: 19 Dec 2006 Posts: 2329 Location: Mumbai, India
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Posted: Mon Apr 30, 2007 3:06 pm Post subject: |
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Isn't Texas Pacific Group the same company which bought 100% Qantas stakes ?
Do they have any investments in India already ? _________________ http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! |
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stealthpilot Member
Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB
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Posted: Tue May 01, 2007 7:00 am Post subject: |
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TPG teamed up with Macquarie bank to buy Qantas (im not sure how much)
It would guess that TPG has other investments in India. There's now a lot more scope and opportunity for PE firms to enter the market.
Anyway back to the topic, Interesting idea. There was another thread about the possibility of this and I didn’t sound optimistic. The idea of a full service airline with a low cost subsidiary sounds good, but it's much harder to pull off. Look what happened to Delta and United? (I agree though, the scenario in India is different)
If the management can pull it off somehow great- they have a common fleet and maintenance but that's about it. Schedules will have to be fine tuned and lots of work put into it- it's not as simple as owning 2 different airlines and running them simultaneously. _________________ eP007 |
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HAWK21M Member
Joined: 19 Dec 2006 Posts: 8132 Location: Mumbai, INDIA
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Posted: Tue May 01, 2007 3:54 pm Post subject: |
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stealthpilot wrote: |
If the management can pull it off somehow great- they have a common fleet and maintenance but that's about it. Schedules will have to be fine tuned and lots of work put into it- it's not as simple as owning 2 different airlines and running them simultaneously. |
Both are Maintenance organisations under Catergory CAR 145.So just a bit of tuning needed.
regds
MEL _________________ Think of the Brighter side !!! |
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stealthpilot Member
Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB
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Posted: Fri May 04, 2007 3:09 am Post subject: |
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HAWK21M wrote: |
Both are Maintenance organisations under Catergory CAR 145.So just a bit of tuning needed.
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Sorry I lost you there Mel, did you mean that the 2 maintenance divisions will need a bit of tuning to merge themselves?
Talking about the airlines, one is a bare minimums low cost no frills whatsoever airline while the other is a fairly high end all frills airline. I meant it was be a challenge to successfully run those 2 airlines together in the same market. How many other airlines can or have done that? _________________ eP007 |
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COUGAR Member
Joined: 01 Jan 2007 Posts: 986 Location: Bangalore
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Posted: Fri May 04, 2007 10:45 am Post subject: |
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BA, LH, AF: all run low-cost subsidiaries. _________________ http://www.cougar-rides.com
<B>Live to Ride - Ride to Live</B>
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HAWK21M Member
Joined: 19 Dec 2006 Posts: 8132 Location: Mumbai, INDIA
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Posted: Fri May 04, 2007 1:08 pm Post subject: |
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stealthpilot wrote: | HAWK21M wrote: |
Both are Maintenance organisations under Catergory CAR 145.So just a bit of tuning needed.
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Sorry I lost you there Mel, did you mean that the 2 maintenance divisions will need a bit of tuning to merge themselves?
Talking about the airlines, one is a bare minimums low cost no frills whatsoever airline while the other is a fairly high end all frills airline. I meant it was be a challenge to successfully run those 2 airlines together in the same market. How many other airlines can or have done that? |
I meant there would be a few schedules made common.The difficult part would be merging the staff from both Airlines into one team.
regds
MEL _________________ Think of the Brighter side !!! |
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andrew Member
Joined: 24 Apr 2007 Posts: 212
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Posted: Fri May 04, 2007 1:46 pm Post subject: |
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HAWK21M wrote: | stealthpilot wrote: | HAWK21M wrote: |
Both are Maintenance organisations under Catergory CAR 145.So just a bit of tuning needed.
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Sorry I lost you there Mel, did you mean that the 2 maintenance divisions will need a bit of tuning to merge themselves?
Talking about the airlines, one is a bare minimums low cost no frills whatsoever airline while the other is a fairly high end all frills airline. I meant it was be a challenge to successfully run those 2 airlines together in the same market. How many other airlines can or have done that? |
I meant there would be a few schedules made common.The difficult part would be merging the staff from both Airlines into one team.
regds
MEL |
Oh I dont know Mel - that might be easier than you think. The hosties on both airlines are cute and are princesses!! :p |
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stealthpilot Member
Joined: 19 Dec 2006 Posts: 2325 Location: BLR, DXB
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Posted: Fri May 04, 2007 9:30 pm Post subject: |
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COUGAR wrote: | BA, LH, AF: all run low-cost subsidiaries. |
They might have regionals and some lower cost subsidiaries, but they don’t heavily compete on their core routes.
IT and DN compete on many routes, and after the merger they will have to adjust schedules to stop (or reduce) competing with itself. _________________ eP007 |
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abn Member
Joined: 02 May 2007 Posts: 113
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Posted: Fri May 04, 2007 9:41 pm Post subject: |
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seems like its "merger season" in India, AI/IC, 9W/S2 and next IT/DN
the Trimurtis of Indian Aviation _________________
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HAWK21M Member
Joined: 19 Dec 2006 Posts: 8132 Location: Mumbai, INDIA
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Posted: Sat May 05, 2007 12:10 pm Post subject: |
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abn wrote: | seems like its "merger season" in India, AI/IC, 9W/S2 and next IT/DN
the Trimurtis of Indian Aviation |
Don't forget the Freighter operators too.Thats where the $ is.
regds
MEL _________________ Think of the Brighter side !!! |
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abn Member
Joined: 02 May 2007 Posts: 113
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Posted: Sun May 06, 2007 4:38 pm Post subject: |
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HAWK21M wrote: | abn wrote: | seems like its "merger season" in India, AI/IC, 9W/S2 and next IT/DN
the Trimurtis of Indian Aviation |
Don't forget the Freighter operators too.Thats where the $ is.
regds
MEL |
you're right mel!
meanwhile there is really something big brewing up
Is it going to be an ambani vs ambani battle?
Play Video _________________
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HAWK21M Member
Joined: 19 Dec 2006 Posts: 8132 Location: Mumbai, INDIA
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Posted: Mon May 07, 2007 10:37 am Post subject: |
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[quote="abnIs it going to be an ambani vs ambani battle?
[/quote]
Mukesh planning excluive cargo & Anil investing in Commercial.Seems different paths.
regds
MEL _________________ Think of the Brighter side !!! |
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andrew Member
Joined: 24 Apr 2007 Posts: 212
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Posted: Mon May 07, 2007 3:18 pm Post subject: |
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There's obviously a lot of people willing to put good money after bad. IT/ KF has a dodgy buziness plan (high cost, low price), but yong ADAG Ambani is happy to help with funds that he is reportedly going to invest in the company - which THEN the good Mr Mallya is reportedly promptly going to use to put into another airline with a seemingly dodgy profit record - DN. Bloody hell!!
Reminds me of the days of the tech boom ten years ago when hyperbole was enough for people to invest millions in anticipation of things to come. Now the tech highway is littered with names like Worldcom, 360networks, Enron, Global Crossing, Reach.......
I'd be nervous if I was airbus - most of the growth they are projecting for INdia is coming from airlines that will potentially not be around at the time of delivery. When the slow down comes - and it will, my friends, it will (the circle of life must fulfil itself) - there will be a lot of planes coming out of their leases in India that will fly off to a dry sandy north American dessert bearing exotic names and colours, brining back a time when it was silly season in the desi skies. |
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G-BYGB Member
Joined: 21 Dec 2006 Posts: 1813 Location: Bangalore/Delhi
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Posted: Mon May 07, 2007 4:54 pm Post subject: |
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I saw a flash news on TIMES NOW at 16:45.Mallay is intrested in buying Air deccan.He said he is intrested in Air deccan but acquisition is not imminent.
But Capt Gopinath in an interview to Times now said that he is not gonna sell DN to Mallaya.He also said that when DN is doing well why we have to sell.
So guys,I think Mallaya wants to show his money power once again and his intent is clear that he wants to buy Air Deccan.It looks like DN is in no mood to give up on bcoming a best doestic carrier in India.The recent losses seem to have not bothered Gopinath much.BTW Gopinath also mentione that Air Deccan is one of the best domestic carrier in India,second to 9W interms of market share.
He said the airline is growing every year and it is increasing its fleet. _________________ www.flickr.com/G-BYGB photos |
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G-BYGB Member
Joined: 21 Dec 2006 Posts: 1813 Location: Bangalore/Delhi
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Posted: Mon May 07, 2007 5:29 pm Post subject: |
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I think Capt Gopinath is serious on this one that he has no plans of selling Air deccan to anyone.Then I'am confused as to whether they are really going to negotiate on this one or its just another thrick on the part of media in creating a hype that Gopinath is not intrested in selling DN. _________________ www.flickr.com/G-BYGB photos |
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the_380 Member
Joined: 19 Dec 2006 Posts: 2329 Location: Mumbai, India
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Posted: Mon May 07, 2007 9:27 pm Post subject: |
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Probably he'll sit on fooling around till they post some more 100-200 crore losses _________________ http://www.myspace.com/avsatsworld
A Walt Disney and 20th Century Fox Audio Producer!!! |
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karatecatman Guest
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Posted: Fri May 11, 2007 4:39 pm Post subject: |
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U turn: Is Gopinath patching up with Mallya?
http://tinyurl.com/3a8dk6
(Times of India)
Quotes:
On Wednesday though, Capt Gopinath in his speech did a volte face and said men and women maybe from Mars and Venus respectively, but "they get into bed together, though they fight." He added: "Somebody said politics is the art of the possible, we say business is the art of possible too, not that we are looking at getting into bed."
The Deccan CEO then took a shot at Jet Airways, the largest player in the domestic market by saying that Kingfisher Airlines was taking away the top end of the market from Jet, while Air Deccan was chipping away the heels from the bottom. "I'm indeed extremely thankful to Vijay. We are not competing with Vijay, he is at the opposite end of the consumer base, we are not even competing with other low-cost carriers, we are competing with trains," Gopinath added.
He then went on to speak about the need for better infrastructure and how government should consider aviation as a core sector. But it was the closing words that took the cake: "I wish Vijay that sooner or later, he becomes the largest airline in the full service segment." |
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