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IT (Kingfisher Airlines) Looking To Buy Maxjet?  
User currently offlineNimish From India, joined Feb 2005, 3212 posts, RR: 9
Posted (8 years 1 week 2 hours ago) and read 4347 times:

From: http://timesofindia.indiatimes.com/articleshow/1784095.cms

Quote:
NEW DELHI: Liquor baron Vijay Mallya is out shopping again. And this time round, Mallya has set his sights on an US-based premium-class-only airline MAXjet Airways to fuel his dreams of taking Kingfisher Airlines international.
...
Mallya is in advanced talks with MAXjet for an outright acquisition - a deal that would give his Kingfisher Airlines rights to mount transatlantic flights and even operate between US and India, sources close to the development told ToI. The deal is expected to be concluded over few months.
...
Mallya, sources said, intends to also use the MAXjet acquisition to start direct flights between US and India under the bilateral Open Sky arranement between the two nations. "Negotiations are underway and they are at an advanced stage.

If the deal comes through, Kingfisher would be able to operate international flights using the MAXjet fleet from next year and augment the operations with its own long-haul jets that join its fleet from 2008,"the sources said.

Mallya confirmed the acquisition plan but refused to divulge details about his target airline. "We are talking with four US airlines for our international acquisition and MAXjet is one of them. The talks are still at a preliminary stage and nothing has been decided so far,"he said.

The acquisition, sources said, is aimed at cruising past the Indian regulation that restricts international flights only to airlines that have a five-year domestic flight track record. The purchase is expected to be carried out through his US-based venture - Kingfisher International Airlines (KIA) - in order to meet the law of the land.

US norms do not allow foreign ownership of airlines in America. Since Mallya's children - Sidhartha, Leana and Tanya - own a majority 75% stake in KIA as American citizens, this venture would meet the US regulation on ownership of airlines, sources said....



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15 replies: All unread, jump to last
 
User currently onlineDIJKKIJK From France, joined Jul 2003, 1784 posts, RR: 4
Reply 1, posted (8 years 1 week ago) and read 4269 times:

Dont'know but a lot of my friends in India tell me that anything that apppears on the Times of India should be taken with a big spoon of salt... Wink


Never argue with idiots. They will bring you down to their level, and beat you with experience.
User currently offlineAseem From India, joined Feb 2005, 2046 posts, RR: 10
Reply 2, posted (8 years 6 days 21 hours ago) and read 4181 times:

Quoting DIJKKIJK (Reply 1):
Dont'know but a lot of my friends in India tell me that anything that apppears on the Times of India should be taken with a big spoon of salt...

no not quite!!

I don't think it would be a good idea to buy a US airlines. I dont' think it is that simple to seek permission of DoT to fly international. I sincerely hope he does not have to go through what Mittal had to in Euorpe.
rgds
VT-ASJ



ala re ala, VT-ALA ala
User currently onlineDIJKKIJK From France, joined Jul 2003, 1784 posts, RR: 4
Reply 3, posted (8 years 6 days 20 hours ago) and read 4125 times:

Quoting Aseem (Reply 2):
I dont' think it is that simple to seek permission of DoT to fly international.

Maxjet already flies international from the US. But they are a small airline with only two aircraft.


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Quoting Aseem (Reply 2):
I sincerely hope he does not have to go through what Mittal had to in Euorpe.

The two are completely different situations. Of course, Mittal finally had to settle for a minority stake in the merged entity, which is ok as his operations are spread all over the world. I doubt mallya would want that, as he probably wants to use maxjets' rights to fly international from India to the US, bypassing the Indian government's regulations.



Never argue with idiots. They will bring you down to their level, and beat you with experience.
User currently offlineNimish From India, joined Feb 2005, 3212 posts, RR: 9
Reply 4, posted (8 years 6 days 20 hours ago) and read 4109 times:

Is there anyone (from Maxjet) who confirm whether such discussions are actually taking place (or not)?


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User currently offlineIflymax From United States of America, joined Jul 2005, 11 posts, RR: 0
Reply 5, posted (8 years 6 days 20 hours ago) and read 4094 times:

It is correct to say that anything that appears in the Times of India should be taken with a grain of salt. At least in this case...

The word from MAXjet is "No."

And they are a growing airline with Three Aircraft....

[Edited 2006-07-21 15:46:20]

[Edited 2006-07-21 15:47:37]

User currently offlineANother From , joined Dec 1969, posts, RR:
Reply 6, posted (8 years 6 days 20 hours ago) and read 4059 times:

Quoting DIJKKIJK (Reply 1):
US norms do not allow foreign ownership of airlines in America. Since Mallya's children - Sidhartha, Leana and Tanya - own a majority 75% stake in KIA as American citizens, this venture would meet the US regulation on ownership of airlines, sources said....

That is true, but the language is 'substantially owned, and effectively controlled' If Daddy runs the company, it isn't controlled by US citizens. They would have to craft their management structure very carefully.


User currently offlineIflymax From United States of America, joined Jul 2005, 11 posts, RR: 0
Reply 7, posted (8 years 6 days 19 hours ago) and read 4016 times:

Again - the article should not be taken seriously....

Another interpretation - given that Mallya has been seeking International Route Authority for some time, this is one way of attempting to goad the Indian government into doing something....


User currently offlineTOLtommy From United States of America, joined Dec 2003, 3288 posts, RR: 4
Reply 8, posted (8 years 6 days 19 hours ago) and read 3974 times:

This months Airline Business magazine noted that Kingfisher was looking to purchase a US carrier via his children. According to the article, a new airline in India cannot fly int'l for I believe 5 years after start up. Mallya wants a way around it, and MaxJet cetainly fits his business model. Some of you may not like the source, but it sounds plausible when combined with other sources.

User currently offlineIflymax From United States of America, joined Jul 2005, 11 posts, RR: 0
Reply 9, posted (8 years 6 days 18 hours ago) and read 3949 times:

Again....it's not happening.

User currently offlineHAWK21M From India, joined Jan 2001, 31667 posts, RR: 56
Reply 10, posted (8 years 6 days 17 hours ago) and read 3892 times:

Interesting.I wonder how this Transpired,The News Article  Smile
regds
MEL



Think of the brighter side!
User currently offlineNYC777 From United States of America, joined Jun 2004, 5732 posts, RR: 48
Reply 11, posted (8 years 6 days 15 hours ago) and read 3801 times:

How is maxjet doing? If they're doing well they'll have no interest in being bought out by Kingfisher.


That which does not kill me makes me stronger.
User currently offlineIflymax From United States of America, joined Jul 2005, 11 posts, RR: 0
Reply 12, posted (8 years 6 days 14 hours ago) and read 3742 times:

As to your above point.....Exactly.

User currently offlineNimish From India, joined Feb 2005, 3212 posts, RR: 9
Reply 13, posted (8 years 3 days 3 hours ago) and read 3497 times:

Quoting NYC777 (Reply 11):
How is maxjet doing? If they're doing well they'll have no interest in being bought out by Kingfisher.

Are Maxjet really doing well? Does not seem like it given their limited fleet size (2 now 3 a/c)?



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User currently offlineHAWK21M From India, joined Jan 2001, 31667 posts, RR: 56
Reply 14, posted (8 years 2 days 18 hours ago) and read 3389 times:

Quoting Nimish (Reply 13):
Are Maxjet really doing well? Does not seem like it given their limited fleet size (2 now 3 a/c)?

How old is this Airline.
regds
MEL



Think of the brighter side!
User currently offlineBoeing757/767 From United States of America, joined Jun 1999, 2282 posts, RR: 1
Reply 15, posted (8 years 2 days 18 hours ago) and read 3376 times:

This pretty much puts an end to this discussion:

See MaxJet release:

http://biz.yahoo.com/bw/060725/20060725005695.html?.v=1



Free-thinking, left-leaning secularist
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