Kingfisher buys Stake in Air Deccan

Vijay Mallya's UB Group, the operator of Kingfisher Airlines, finalized a deal to buy 26 per cent stake in Air Deccan. The deal will be worth 5.5 billion rupees ($135 million). UB Group would pay 155 rupees per share to acquire 35.22 million shares of Deccan Aviation Ltd. A 26 percent stake would make the UB Group the largest shareholder of Air Deccan.

Deccan Aviation's MD Capt. G.R. Gopinath told reporters that the two airlines would be run as independent entities. Capt. Gopinath would continue to be the Chairman of the Deccan Aviation Ltd. Vijay Mallya would be the Vice-Chairman. Gopinath also said that Air Deccan would maintain its policy of lower cost service to the passengers.