Kingfisher may use Air Deccan to fly overseas by 2008

Kingfisher AirlinesVijay Mallya has announced his plans to use Air Deccan to fly abroad by year 2008. Currently, any domestic airline has to operate for 5 years to be eligible for flying overseas. The booming Aviation industry is asking Government to change the norms regarding this 5 year period.

Kingfisher will be eligible for flying abroad in 2010, while Air Deccan can be eligible to fly international routes by August 2008. Mr. Mallya has plans to offer co-branded flights to US using Air Deccan. The current plans are to start flights connecting Los Angeles to Mumbai and San Francisco to Bangalore.

Air Deccan has also announced that the company may soon hike the air fares for domestic flights.
Captain Gopinath, Chairman, Air Deccan indicated that the company is looking at a maximum of Rs 500-1,000 price increase.

Mr. Vijay Mallya indicated that Captain Gopinath will continue as the Chairman of Air Deccan, even if he hikes his stake in the carrier. Mr. Mallya also announced the plans of makeover of Air Deccan. Air Deccan will soon have a new look and feel with Kingfisher colours. Both companies will have joint marketing and advertising plans.

The UB Group has a 26% stake in Air Deccan. Mr Mallya is aiming at acquiring a controlling stake in Air Deccan through an open offer.

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