In a bid to wipe off red ink from its balance sheet, India’s largest budget carrier, Air Deccan, is planning to withdraw from all loss-making routes. The new strategy being scripted for the Bangalore-based carrier following its takeover by Vijay Mallya’s UB Group positions it on non-metro routes. The metro routes would be the focus of Kingfisher with its premium full-service model, aiming at improved revenues.
Air Deccan may also reduce frequency on routes like Delhi-Bangalore. At the same time, Kingfisher is expected to go all out on busy sectors like Delhi-Mumbai and Delhi-Bangalore.
According to industry sources, Mr Mallya held a meeting on Monday with Kingfisher and Air Deccan officials and reviewed the route rationalisation process being carried on by the two airlines. He stressed that both ailines should have their focus clearly defined rather than competing with each other. Mr Mallya’s UB Group acquired 26% stake in Air Deccan for Rs 550 crore in June this year.
Rebranding of Air Deccan is likely to take effect from October 15, the sources said.
03/10/07 Nirbhay Kumar/Economic Times
Thursday, October 04, 2007