Kingfisher Airlines Buys Stake in Air Deccan

So after lot of speculation and exchange of words, Kingfisher Airlines has acquired 26% stake in Deccan Aviations, the company that runs Air Deccan.

Follow the following links :

'Spirited' Mallya luring Gopi into ras leela

Air Deccan sells 26% stake to Kingfisher for Rs 550 cr

I feel that its a good news, as we might see an increase in service and Efficieny of Air Deccan, benefiting travellers all around.

But I hope they will keep the prices as is at Air Deccan1!

you bet

This the age of consolidation

I am not sure whether consolidation will lead to an efficiency. The very purpose of consolidation in any industry is to cut competition which means oppourtunity to raise the price of the product. I am damn sure that eventually air fare will be raised. After all both these airlines have been making losses.

Sadanand

Consolidation results in lower costs especially in the ailine industry where inventory of spare parts and costs of maintainance can be reduced and infrastructure at airportrs better utilized. This merger comes on the heels of the Jet Sahara merger.

At the end of the day, Mallya makes his money from selling booze. Hence, the bold brazen Kingfisher lettering displayed on his planes as a means to advertise his beer. I suspect the stake in Air Deccan will allow hims access to a larger number passengers -- if the Indian govt finally allows the sale of alcohol on board the aircraft. He is probably working on that too.