Accenture submits recommendations on Kingfisher-Deccan operations

Mumbai: Consulting firm Accenture has submitted its recommendations to the UB board, which is likely to consider them at a meeting on Wednesday. Industry speculation would suggest that the report recommends a merger of Kingfisher Airlines with Deccan Aviation so that synergies between the two airlines are fully exploited.

A merger will also resolve Kingfisher's problems about being able to operate on international routes. Deccan is now eligible for such operations, as it has completed the mandatory five years of domestic operations required before airlines can apply for international operations. Kingfisher is due to take delivery of ten long-haul planes in 2008, which will come in handy for such operations..

A financial consultant may be appointed by the board to look into the modalities of the deal structure. The Kingfisher-Deccan merger is likely to be completed by the end of this fiscal.

To date, Kingfisher Airlines has accumulated losses of some Rs1,200 crore and Deccan Aviation at least Rs800 crore.

The Kingfisher-Air Deccan combine has emerged as India's largest domestic airline connecting 69 cities with 570 daily flights, with a fleet of 76 aircraft.