Deccan-Kingfisher merged entity to raise $250 Mn for capex

By SiliconIndia   |   Saturday, 26 January 2008, 05:33 Hrs
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Bangalore: The merged entity of Deccan Aviation and Kingfisher Airlines plans to raise $250 million via equity for its capital expenditure (capex) needs, reported Business Line.

A. K. Ravi Nedungadi, the President and the Chief Financial Officer of the UB Group which owns both the airlines, said that the issue of raising funds will be taken up at the next board meeting of Deccan Aviation on January 30, the day on which KPMG is expected to present a report on the valuation of the merged entity before the board.

Commenting on the post-merger performance of the entity, Nedungadi said Kingfisher Airlines has posted a small profit during December while Deccan Aviation had reduced its losses since the merger.

Nedungadi said that since it is a merged entity, both the airlines together should be able to offer customers a far better product than that was possible when the airlines were two separate entities.

Nedungadi added that Deccan has also come to an agreement with Airbus where two of its aircraft production slots are being sold to another entity at a good premium.

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