M&a of kingfisher and deccan

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M&A

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M&a of kingfisher and deccan

  1. 1. Mergers & Acquisitions Marriage of
  2. 2. • Origin- Deccan Aviation Ltd. • Growing demand of Air connectivity • Identifying potential Consumer
  3. 3. Towards making Air travel more Comfortable • E-ticketing • Cut on the Complementary service - food to passengers - no meals or company vehicles - no separate staff
  4. 4. • Dr Vijay Mallya identified the gap • Launched in 2005 by United Breweries Group • Ready for take off with 4 flights a day and a fleet of one Airbus320
  5. 5. • Great in-flight experience - Personalised in-flight entertainment system - Fashion models as flight attendants - Designer flight interiors -Extendable footrests
  6. 6. TH E MERGER
  7. 7. LOSSES YEAR ENDED Kingfisher Airlines Rs.577crs 31st March,2007 Deccan Aviation Rs.418crs 30th June,2007
  8. 8. DEAL STRUCTURE • 1st Phase: - UB bought 26% stake at Rs.155 p.s. on 9th July,2007 - Paid Rs.550crores • 2nd Phase: - Open offer for additional 20% stake
  9. 9. The Acquisition
  10. 10. Post Merger Issues • Different Cultures • Expected Job Cuts • Different Leadership Styles
  11. 11. contd... • Expected Industry impact Further consolidation Rise in fares Greater shareholder value Higher attrition rates in employees
  12. 12. Current Scenario •Delays in AirCrafts deliveries &Cancellation o •Industry Making Losses-Oil Concerns

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