M&a of kingfisher and deccan
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Transcript of M&a of kingfisher and deccan
Mergers & Acquisitions
Marriage of
• Origin- Deccan Aviation Ltd.
• Growing demand of Air
connectivity
• Identifying potential Consumer
base
Towards making Air travel more Comfortable
• E-ticketing
• Cut on the Complementary service
- food to passengers
- no meals or company vehicles
- no separate staff
• 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
• Great in-flight experience
- Personalised in-flight entertainment system
- Fashion models as flight attendants
- Designer flight interiors
-Extendable footrests
TH E
MERGER
LOSSES YEAR ENDED
Kingfisher Airlines
Rs.577crs 31st
March,2007
Deccan Aviation
Rs.418crs 30th June,2007
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
- Additional Rs.418crores
The Acquisition
Post Merger Issues
• Different Cultures
• Expected Job Cuts
• Different Leadership Styles
contd...• Expected Industry impact
Further consolidation
Rise in fares
Greater shareholder value
Higher attrition rates in employees
Current Scenario
•Delays in AirCrafts deliveries &Cancellation of Orders
•Industry Making Losses-Oil Concerns