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Gopinath Says Willing To Buyback Deccan Aviation Stake

15 October, 2008

Former Deccan Aviation owner and vice-chairman of Kingfisher Airlines GR Gopinath has said that he would be willing to buy back his airline from Kingfisher if it is looking to exit the low-cost carrier (LCC) business. “I have offered him to buy back the stake in Deccan if they are not interested in the low-cost model,” said Gopinath while speaking to NDTV Profit.

On Monday, Kingfisher and Jet formed an operational alliance under which they plan to co-operate on routes and not compete with each other. They have also planned to save on shared infrastructure and buy fuel from the vendors together, as volume will give them more power to negotiate.

He added that there is no scope for a hostile bid of Kingfisher as Mallya controls more than 60% stake. Gopinath clearly sounded upset about Jet-Kingfisher deal and said he was against monopoly in the sector. When asked if he has financial backers for the deal, he said that “even for Deccan i found people who believed in my dream.”

Gopinath said that the deal will lead to re-emergence of cartelisation in the aviation industry which Deccan broke with its low-cost model. He added that the deal between Jet and kingfisher could lead to long term monopoly and is not good for the country. Gopinath said that rising air ticket prices has led to a shrinking market in the aviation industry.

 


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3 Comments
Ramandeep Kaur Arora . 6 years ago

Mr. Gopinaths’s concern of having LCC is commendable here. We must understand that having a monopoly by Mr. Mallya’s Kingfisher in the sector will only lead to raise in the ticket prices and thereby reducing the no. of flyers, which will effect the industry entirely. Think of a common man – as in the middle class. As we had observed earlier – if the charges were as much as the shatabadi or rajdhani express, people preferred commuting by air rather than trains, thereby saving their time spending the same amount of money.

Poonacha.M.P . 6 years ago

I think we all must back Capt Gopinath with his plans of buying back Deccan stakes as people would have an option of having 3 low cost carriers as variants with the present scenario we can forsee a death of low cost carriers in india due ongoing mergers between airlines. Also job security levels and future for of employees with so called Kingfisher and Kingfisher Red{Deccan} are really grim. Hence i would suggest Mr Mallya must think of returning back the stakes to Capt Gopinath so that there are two different airlines operating in different segments ensuring frequent connectivities within india and also ensuring Job security to employees of both the airlines.Probably Mallya can think of running Kingfisher for Club class and Premium class passengers. And Capt Gopinath can once again continue rumming a low carrier for the common man.

Abhishek Gupta . 6 years ago

Govt should also see that the tax charged on air tickets should be reasonable and not like as of now where tax is 3-4 times of the airfare. Its the tax burden not the airfare that is putting pressure on passenger.

Gopinath Says Willing To Buyback Deccan Aviation Stake

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