This news has been doing rounds for some time , though Captain Gopinath Plainly rejected that there is no deal in offering to Kingfisher , but the newspapes does make us believe otherwise .
Though i would say a stratergic merger between the two would be an good thing to happen for either of them! Mainly because although they are there in the same industry but the market segment they target are different. And that makes sure that they don't eat upon each others customer base in the aviation industry ..
It would be good Air deccan from the perspective that it would help them cut even their losses , they supposedly recorded a loss in the last quarter , and that makes them vunerable for such an venture .As for Vijay Mallaya the king of mergers and acquisitions this would make him the largest market share holder in India.So , i would say it could be a win win situtation.
But yes the sad thing could be if Air Deccan sheds its so called low cost flights. As its only because of air deccan that lots of people who used to earlier travel by trains , now think twice as to whether they should book a flight ticket and save some time !And i was pretty impressed to read about the business model/plan that Air deccan followed to cut its cost , though it didn't help them cut even their losses , but as Captain Gopinath said it takes time for plans to succeed .
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