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

By SiliconIndia   |   Saturday, 26 January 2008, 05:33 Hrs
Printer Print Email Email
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.

SPOTLIGHT
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..