Bangalore: Air Deccan and Kingfisher Airlines has decided to team up in order to form a single business entity. This will lessen operational expenses and take the new company towards success.

The decision follows a statement by consultancy firm Accenture that was commissioned to discover the prospective domains of synergies between the companies after the acquisition.

The UB Group, which already bought 46 percent stake in Deccan Aviation, turn out to be its single largest shareholder

The new company will be renamed as ‘Kingfisher Airlines,’ which will be headed by Vijay Mallya as the chairman. On the other hand, Capt Gopinath, Deccan’s originator, will be the vice-chairman of the new company.

In order to retain their identities, the new company ‘Kingfisher Airlines’ will manage two separate brands including Deccan and Kingfisher.

The rebranding of Deccan Aviation, that began after the UB Group acquired 46 per cent stake in the airline, would be completed with the merger. The UB Group board is also reportedly meeting tomorrow.

While talking to reporters after the conference, Vijay Mallya stated that the new company would be stared by early 2008. He added that the swap ratio will be decided soon.

Capt. Gopinath said this was the best alternative of presenting India the best in aviation.

“The combined entity will be the largest in India and the synergies will be enormous,” he added.

Mr. Vijay said, “It will be one company, and eligible to fly (internationally) in 2008. Air Deccan will continue to be listed, incorporating the businesses of both Kingfisher and Deccan itself but the listed entity’s name will be changed to Kingfisher Airlines.”