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Air Deccan seeks nod to fly abroad
 
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October 30, 2007 20:02 IST
Kingfisher Airlines chairman Vijay Mallya on Tuesday said budget carrier Air Deccan has applied for permission to fly overseas from next year.

"Air Deccan has sought government approval to fly overseas from next year. The company is looking for a licence to start flights to Middle East, South East Asia and the US," he said on the sidelines of the Fortune Global Forum in New Delhi.

Mallya, who launched Kingfisher Airlines in 2005, has been campaigning for relaxation of rules for private carriers to fly abroad but can now do so through Air Deccan, which completes five years of operations next year.

Aviation rules require private carriers to have five years of domestic operations experience and a fleet of at least 20 aircraft for permission to serve overseas destinations.

Mallya, whose UB group had acquired 26 per cent stake in Deccan Aviation [Get Quote] for Rs 550 crore (Rs 5.5 billion) in May this year, purchased another 20 per cent through an open offer that ended earlier this month.

He said Kingfisher Airlines has mandated management consulting firm Accenture to study the possibility of integrating operations of the two airlines.

"We have appointed Accenture to advise on the integration of two airlines. We will take a future course of action after a report from it in the next six weeks," Mallya said.

Mallya also said UB Holdings is planning to raise Rs 1,000 crore (Rs 10 billion) through qualified institutional placement (QIP) next month. The liquor baron would pick up Rs 720 crore (Rs 7.2 billion) of the QIP to maintain his shareholding in the UB Group.


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