Would Mallaya buy Air Deccan? - Airliners-India

VictorTango · Member

Would Mallaya buy Air Deccan?

karatecatman · Member

May SIMPLIFLY as the LCC of Kingfisher.

Don't think he would want to redo the Air Deccan's interiors again.

the_380 · Member

karatecatman wrote:

May SIMPLIFLY as the LCC of Kingfisher. Don't think he would want to redo the Air Deccan's interiors again.

Not a problem to redesign interiors but Mallya wud get intl. routes faster b'cos DN started before IT and Mallya has his eyes on DN so that he can break the competition from Jet, GoAir, Spice and Indian.

Then he can dedicate his Kingfisher to passengers who are ready to pay and get luxury... thats what Mallya wants!

vivekman · Member

Not a bad idea at all!!

HAWK21M · Member

Why would he not Expand his own Airline Instead.

regds

MEL

the_380 · Member

B'cos Mallya frowns at low cost

-- Edited by the_380 at 00:01, 2006-06-21

Karan69 · Member

karatecatman wrote:

May SIMPLIFLY as the LCC of Kingfisher. Don't think he would want to redo the Air Deccan's interiors again.

Or one may never know it may happen the other way around.

Gopinath making Kingfisher aircraft beer factories of the sky and use them as his luxury version of the sky.

Since he competes primarily with the railways [thats what he says not me] he could make KF his "Rajdhani or Palace on wheels" oh sorry i meant Palace on Clouds.

Cheers,

Karan

karatecatman · Member

That's a slight modification of the legendary AIR INDIA line writen on all its aircraft.

"Your Palace in the Sky".

the_380 · Member

yeah and passengers fear it doesn't end up at ur Taj Mahal in the skies.

karatecatman · Member

Private equity funds evince interest in Air Sahara

the_380 · Member

RE: Would Mallaya buy Air Deccan?

the_380 · Member

deleted by Nimish since off-topic and a month old news article

-- Edited by Nimish at 15:13, 2006-07-21

karatecatman · Member

Kingfisher eyes MAXjet of US

Nimish · Member

RE: Would Mallaya buy Air Deccan?

Nimish · Member

VictorTango wrote:

Presuming that DN does not do well and runs into bankruptcy problems in a couple of years, should VM consider acquiring DN?
...I don't see DN surviving for long unless it does something really spectacular.
Olly

I feel that DN will survive for the long run (better chances than IT), since they're focussed on what they're doing and have a low cost base in place.

IT has deep pockets for sure - but they're already spreading thin (I'm guessing this) with the orders for 5 each of 330, 350, 380. I don't know the rationale behind ordering 5 of each type, seems more of a vanity order. Plus since IT is looking at alternatives like buying Maxjet or typing up with some American carrier so IT can operate his a/c and crew under their certificate, they may not have the bandwidth to buy DN.

tayara mechanici · Member

DN initial funding in 2004 was backed by ICICI venture and NM Rothschild and this was less than 18 months into its existence i.e Its ops were limited to secondary cities the A320 had been introduced and market share was still low single digit. Both these org are highly respected and trusted the person and product, it sure means that the fundamentals of this airline are strong.

Right now deccan has the lowest cost for the fleet size among all domestic operators, gopi sounds clued up and directed with his vision of positioning the airline and brand. It makes more sense to start an airline in lanka given the open skies with india rather than buy a airline in USA for the want of 2yrs. The venture capitalist want to have a larger share of the deccan cake, the present funding woes of deccan IMO is nothing but the fund managers playing hard ball. Deccan with a share price of Rs66/- on a mrkt cap of Rs650cr with a domestics pax market share of 11%, considering they started only in aug '03 to me is good going. Additionally among the management heading pvt airlines withing india Warick Brady is by far the best and most experienced coming from Ryan Air as their stansted Manager.

The worst kid on the block at present seems to be JET, presently its share is priced at Rs530 with the market rumours quoting Rs250/- as a realistic price. Considering the issues facing this org i won't be surpriced if the share holders start demanding NGs departure, lets accept it the USA investigation is like a damocles sword over this airline. I would say JET & IT products and personality match, a merger might help both

IT is trying to behave like a Aishwarya among a crowd of middle-class sushilas wooing working class Ramus. End of the day even if aishwarya gets a few salivating ramus she cannot afford to keep herself looking pretty from what ramu can pay...............does this analogy make sense I mean ITs cost is bloody high for the pax its chasing, it wants to emulate VS however VS makes money from the fat cats of london not the bloody common man of India.

Does anyone have access to DN debt/eqity ratio.

Cheers

karatecatman · Member

tayara mechanici wrote:

I would say JET & IT products and personality match, a merger might help both IT is trying to behave like a Aishwarya among a crowd of middle-class sushilas wooing working class Ramus. End of the day even if aishwarya gets a few salivating ramus she cannot afford to keep herself looking pretty from what ramu can pay...............does this analogy make sense I mean ITs cost is bloody high for the pax its chasing, it wants to emulate VS however VS makes money from the fat cats of london not the bloody common man of India.

VABBy · Member

tayara mechanici wrote:

DN initial funding in 2004 was backed by ICICI venture and NM Rothschild and this was less than 18 months into its existence i.e Its ops were limited to secondary cities the A320 had been introduced and market share was still low single digit. Both these org are highly respected and trusted the person and product, it sure means that the fundamentals of this airline are strong. Right now deccan has the lowest cost for the fleet size among all domestic operators, gopi sounds clued up and directed with his vision of positioning the airline and brand. It makes more sense to start an airline in lanka given the open skies with india rather than buy a airline in USA for the want of 2yrs. The venture capitalist want to have a larger share of the deccan cake, the present funding woes of deccan IMO is nothing but the fund managers playing hard ball. Deccan with a share price of Rs66/- on a mrkt cap of Rs650cr with a domestics pax market share of 11%, considering they started only in aug '03 to me is good going. Additionally among the management heading pvt airlines withing india Warick Brady is by far the best and most experienced coming from Ryan Air as their stansted Manager. The worst kid on the block at present seems to be JET, presently its share is priced at Rs530 with the market rumours quoting Rs250/- as a realistic price. Considering the issues facing this org i won't be surpriced if the share holders start demanding NGs departure, lets accept it the USA investigation is like a damocles sword over this airline. I would say JET & IT products and personality match, a merger might help both IT is trying to behave like a Aishwarya among a crowd of middle-class sushilas wooing working class Ramus. End of the day even if aishwarya gets a few salivating ramus she cannot afford to keep herself looking pretty from what ramu can pay...............does this analogy make sense I mean ITs cost is bloody high for the pax its chasing, it wants to emulate VS however VS makes money from the fat cats of london not the bloody common man of India. Does anyone have access to DN debt/eqity ratio. Cheers

Bro i understood each and every word of it and all i can say is that u have hit the nail right on target. If the airline industry really has to make money they need to wait for the economic boom. Because its the growing purchasing power of the middle class which would fuel the growth. One of our collegue had mentioned about techi workers are drawing handsome wages but i guess even if a person is earning 1Lakh pm thats not enough too because people in the developed world earn anywhere between 1000-1500 dollars per week before tax and this is just an average figure. I have seen techi workers fighting tooth and nail for their 1 dollar because if they save their dollars they might end up saving a couple of grand which they get as TA/DA allowance which would led to massive savings in india which they can pocket themselves...

I would rather place my bets on a farmer of punjab who drives a merc and doesnt mind flying his family biz class to London or Canada to meet his relatives who are based there than such techi workers LoL this doesnt mean all techi workers are like that but what i meant to outline is that the purchasing power parity index is still pretty high between the developed world and India.

As far as VM buying DN is concerned c,mon guys i guess we all have better things to do than make such false assumptions and then decide and discuss as to what would happen. Because their are always many slips between cup and lips...

I guess VM would rather concentrate on arranging his finance to buy his aircraft as their plans to go for an IPO has gone in rough weather rather than buying DN

tayara mechanici · Member

vabby wrote:

If the airline industry really has to make money they need to wait for the economic boom.

I thought the whole world is talking about the economic boom underway in INDIA, the wait is for INDIA to reach the 3 largest economy in the world status. That is up for guessing / betting, reach, it will, the status of the 3rd largest economy in the world, 'cause the fundementals are strong. Ex: Orissa has attracted investments amounting to over $25b in the 6months of this year, i can see BBI handling 10 additional A320 flts/day this time next year. The number of techies on these flts will be low however you will have loads of business folks, engineers, bankers etc. Additionally i won't be surprised if Jetstar start flying into BBI from SIN. I have been haunted by the sights of kalahandi beamed on telly across India during the early 90's and always felt sad at the plight of orissa, i was overcome with emotions on reading that VEDANTA are setting up a univ with a $1b grant from Anil aggarwal, this my friend is the lord juganath unleashing his juggernaut on this state at last ............ I had to release my emotions. There are more such growth stories on the way.

http://www.insightorissa.com/news/news_publish.php?naid=956 hope this swells your chest....

On the talk of PPPI and the earnings of Indian techie vs a Yank or English techie, the cost of living in the west is exorbitant as compared to India. It costs me £100/mnth to get my rubbish collected by the council once every week, £18 for a hair cut and approx £50/mn ( At 9p/min) to call my parents in India every alternate day. It costs indians Rs3/min (3.5p) for a call to U.K. probably Rs100 for hair-cut in an aircondition saloon and not more than Rs50/mth to have your rubbish collected daily. I do agree techies in the west earn $1500/wk, thats the reason the work is getting offshored to India. I've heard a lot about these Merc driving farmers of punjab, the same guy drives radio cabs here in southall during the summers I believe a person earning Rs25000/mn in India, his money goes a long way, the person can surely afford to travel once a year by Air to any place of his liking within India.

As long as DN does not have a cash flow problem, in the present condition they are doing well increasing market share at decreasing costs. Like i said earlier, its the bankers bargaining for a greater share of the juicy Indian aviation industry.

Cheers

-- Edited by tayara mechanici at 07:29, 2006-07-24

-- Edited by tayara mechanici at 16:41, 2006-07-24

tayara mechanici · Member

VictorTango wrote:

I don't see DN surviving for long unless it does something really spectacular. Olly

http://economictimes.indiatimes.com/articleshow/1803110.cms

The numbers on my previous post were outdated, is this spectacular enough or do we wait for DN to overtake JET next year. If the govt does allow DN to op to SE & ME by year end they are sure to make life diff for a few more airlines.

Gopis KISS policy seems to working good, hats off to the man. Its truly an amazing achievement in 3yrs.