A bench headed by Justice Arijit Pasayat refused to give relief to Deccan Aviation, which had sought stay on a Delhi high court order. The high court had asked it to pay litigation expenses of Rs 50,000 to a passenger in addition to about Rs 33,000 by way of difference in fares and compensation, as ruled by consumer courts earlier.
Deccan Aviation, operator of low cost carrier Air Deccan, posted a net profit of Rs 9.64 crore (Rs 96.4 million) for its second quarter ended December 31, 2006.
Deccan Aviation Ltd, in which Vijay Mallya's UB group has picked up 46 per cent stake, may hive off its aviation chartering business into a separate entity.
Merged entity to be named Kingfisher Airlines.
Private sector helicopter charter company Deccan Aviation on Monday announced the launch of helicopter charter service from the Bangalore International Airport to select locations in the city.
The scrip is moving northwards since last one month, as Deccan Aviation was considering proposals to infuse additional capital by way of private equity or stake sale.
Low-cost carrier Deccan Aviation is considering rationalisation of some of its routes as a cost-cutting measure in the backdrop of a hike in aviation turbine fuel (ATF) prices, a top company official said.
The board of Deccan Aviation, India's largest budget carrier, will meet in Bangalore on Wednesday to consider the merger with the UB Group's Kingfisher Airlines, which bought a stake in the carrier recently.
With combined accumulated losses of around Rs 2,000 crore (Rs 20 billion), the new entity created by the merger of unlisted Kingfisher Airlines with Deccan Aviation will have many strengths, but its balance sheet will not be one of them.
India's aviation industry is not moving towards profitability any time soon
Several states are identifying greenfield or unutilised projects for low-cost airport.
Deccan Aviation, a new entry in the domestic airlines sector, failed to take-off as its stocks experienced brisk profit selling and plunged 34 percent on the first day of trading on Monday.
UB Holdings, which operates Kingfisher Airline, last year picked up a 26 per cent stake in Deccan Aviation for Rs 550 crore (Rs 5.5 billion). Subsequently, they made an open offer for acquiring another 20 per cent taking its holding to 46 per cent. The merger between Kingfisher Airlines and Air Deccan of Deccan Aviation, is now awaiting Karnataka High Court approval.
In a first by an Indian firm, Deccan Aviation chief Capt GR Gopinath on Friday announced the launch of Deccan Express Logistics, an air cargo and express logistic service on domestic and international routes.
With the inauguration of a direct flight from Delhi to Srinagar, Deccan Aviation, which operates Air Deccan, on Tuesday announced that the low-cost airline would concentrate on increasing the connectivity within Jammu and Kashmir.
The transaction, which values Air Deccan at Rs 155 a share, would be through allotment of non-preferential shares to UB
Kingfisher and Deccan swap of shares will be finalised by April, upon Sebi's approval.
There's talk that the Reliance Anil Dhirubhai Ambani Group is eyeing a minority stake in the carrier. It's also possible that private equity players like Texas Pacific Group may want a slice of the low-cost carrier's equity.
Deccan Aviation, which owns budget carrier Simplify Deccan, reported an improved performance for the third quarter ended March 2008, increasing its yields by 36 per cent and reducing operating losses by 45 per cent. The airline, however, continues to bleed and posted a net loss Rs 199.6 crore during the quarter (against a loss of Rs 213 crore for the same quarter last year), thanks to soaring oil prices, which increased 36 per cent during the quarter.
Rising aviation turbine fuel cost, poor infrastructure, regulatory controls and reluctance of consumers to take to air travel are some of the issues hurting aviation industry in the country, Deccan Aviation executive chairman Captain G R Gopinath said.
Deccan Aviation, which operates the country's largest budget carrier Air Deccan, will make a preferential allotment to investors to raise $75-100 million for its expansion plans.
The Kingfisher-Air Deccan group will be the largest domestic airline with a fleet of 71 aircraft, including 41 Airbuses and 30 ATRs.
The offer, which is being managed by Edelweiss Capital, was scheduled to open on Wednesday and close on August 13.
Anjani Malik, a resident of Haryana, was not able to catch a flight from Kullu to Delhi in March last year and was told to wait for the next day, the exercise which lasted for four days at at a stretch. After the harassment, he decided to return to the capital at his own costs. Malik then approached the District Consumer Forum, Sheikh Sarai, claiming Rs 50,000 compensation following which the airlines was asked to pay Rs 30,000.
Air Deccan is going to a lot of sectors where nobody is going, places like Dehra Dun, Belgaum, Hubli and Kolhapur, we are very focused on the other India.
UB Group, which has raised close to Rs 1,500 crore (Rs 15 billion) debt for keeping Kingfisher Airline in the skies during the past two years, has raised another Rs 1,000 crore (Rs 10 billion) debt to fund the 46 per cent buy in Deccan Aviation.The debt for the 46 per cent buy in Deccan Aviation has been raised in two phases. In the first phase, for the 26 per cent negotiated deal for Rs 550 crore and the subsequent 20 per cent open offer which cost UB Group Rs 425 crore.
Vijay Mallya-led UB Group is all set to meet the month-end deadline for payment of Rs 400 crore (Rs 4 billion) balance toward 26 per cent stake it had picked in Deccan Aviation, the promoter of low-cost carrier Air Deccan.
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