LAXDESI
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Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 12:18 pm

Here's the link to an article on Kingfisher getting to use Indian Airline's terminals at Delhi and Bombay:
http://www.financialexpress.com/fe_full_story.php?content_id=92481


NEW DELHI, MAY 30: Vijay Mallya’s Kingfisher Airlines has staged a coup of sorts by bagging the rights to use the spacious terminals of state carriers Indian Airlines and Alliance Air in New Delhi and Mumbai. Mallya’s success has, however, got the other private operators like Jet Airways, Air Sahara and Air Deccan crying foul. They have termed the allocation of terminal rights to Kingfisher Airlines as “dis criminatory” and lodged a protest with the civil aviation ministry. In both Delhi and Mumbai, the director general of civil aviation had allocated the older terminal to private players and the new terminal only to the public sector carriers.

But Kingfisher Airlines recently entered into a Rs 120 crore deal with Indian Airlines for ground handling and aircraft maintenance. As part of the deal, it was allowed to use the Indian Airlines and Alliance Air terminal.

“We had foreseen the total chaos at the metros airports, especially during peak hours,” Kingfisher Airlines president Alex Wilcox told FE. “We are utilising the airport infrastructure of Indian Airlines as part of the comprehensive arrangement with it,” he said.

At Delhi airport, Indian Airlines and its subsidiary, Alliance Air, utilise terminal 1A which has 33 check-in counters and handles 1,425 passengers at any given time. Terminal 1B is used by Jet, Sahara, Air Deccan, SpiceJet, and so on. It has only 17 check-in counters and handles 1,450 passengers.

“Complete chaos prevails at both the airports during peak hours,” an Air Sahara official said, adding, “it would have been fair if the Kingfisher-Indian Airlines deal was made known to us earlier”.

Air Deccan’s MD GR Gopinath agrees the allocation is discriminatory. “All the private airlines have strongly protested to the civil aviation ministry.”


COULD THIS LEAD TO MORE THAN JUST TERMINAL SHARING?
 
aseem
Posts: 1971
Joined: Tue Feb 01, 2005 12:39 pm

RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 12:35 pm

Quoting LAXDESI (Thread starter):
COULD THIS LEAD TO MORE THAN JUST TERMINAL SHARING?

only till KF builds it's own infrastructure. Doubt GOI will divest IC in the hands of existing competitor. Shall go against the rules. Moreover GOI won't give controling stake to anybody.
rgds
VT-ASJ

[Edited 2005-05-31 05:36:28]
ala re ala, VT-ALA ala
 
mrniji
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RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 1:07 pm

Quoting LAXDESI (Thread starter):
COULD THIS LEAD TO MORE THAN JUST TERMINAL SHARING?

Alliance building ("we are stronger together") is very normal in econoics, especially in an increasing competitive field like civil aviation in India.

The deal will be a big win-win for both airlines and a big drawback especially for DN and SpiceJet

Malviya reminds me at Brandson
"The earth provides enough resources for everyone's need, but not for some people's greed." (Gandhi)
 
LAXDESI
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RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 1:11 pm

Quoting Aseem (Reply 1):
Doubt GOI will divest IC in the hands of existing competitor. Shall go against the rules

I was not aware of formalized rules which prohibit a competitor from acquiring a minority stake. Didn't Tata and SQ at one point explored the possibility of buying a 40% stake in AI, even though SQ is a competitor to AI.

Quoting Aseem (Reply 1):
Moreover GOI won't give controlling stake to anybody.

Kingfisher would settle for less than a majority stake to begin with, and hope that in about 5 years rules will be revised to allow a majority stake. Didn't something similar happen in the case of Maruti Automobiles?

Fleet compatibility is another plus factor for alliance/code sharing, and an eventual merger.
 
aseem
Posts: 1971
Joined: Tue Feb 01, 2005 12:39 pm

RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 1:52 pm

Quoting LAXDESI (Reply 3):
I was not aware of formalized rules which prohibit a competitor from acquiring a minority stake. Didn't Tata and SQ at one point explored the possibility of buying a 40% stake in AI, even though SQ is a competitor to AI.

first of all, GOI would like to prevent any kind of monopoly developing. And suppose KF does take some stakes in IC, then GOI would fear that KF may try to kill IC for it own benefit. The kind Coca-Cola did to Thumbs-up.
The reason why TATA-SQ deal didn't go through is altogther a different story.

Quoting LAXDESI (Reply 3):
Kingfisher would settle for less than a majority stake to begin with, and hope that in about 5 years rules will be revised to allow a majority stake. Didn't something similar happen in the case of Maruti Automobiles?

Well if KF has to wait for 5yrs, then why take the burden of ICBig grin

Quoting LAXDESI (Reply 3):
Fleet compatibility is another plus factor for alliance/code sharing, and an eventual merger.

fleet compatibility is understandable, but that shall restrict KF's interest to maintenance. I'd call eventual merger as pure speculation.  twocents 
rgds
VT-ASJ
ala re ala, VT-ALA ala
 
mrniji
Posts: 5382
Joined: Sun Feb 29, 2004 11:51 am

RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 2:07 pm

Quoting Aseem (Reply 4):
first of all, GOI would like to prevent any kind of monopoly developing. And suppose KF does take some stakes in IC, then GOI would fear that KF may try to kill IC for it own benefit. The kind Coca-Cola did to Thumbs-up.

quite frankly, from a Pol Science perspective, there are good reasons for the GOI to do that - the Soft drink industry is a scaring example
"The earth provides enough resources for everyone's need, but not for some people's greed." (Gandhi)
 
TKMCE
Posts: 819
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RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 2:19 pm

Quoting Mrniji (Reply 5):
Quoting Aseem (Reply 4):
first of all, GOI would like to prevent any kind of monopoly developing. And suppose KF does take some stakes in IC, then GOI would fear that KF may try to kill IC for it own benefit. The kind Coca-Cola did to Thumbs-up.

Ah sorry to take this a little off track but I am fascinated by the Softdrink industry as well (although to a little bit lesser extent than the aviation industry!). While Coke did try to kill of Thumos Up, apparently it was not very scussessful and they had to bring back the product. Well my local dukanwallahs including Biggies like Food World stock both equally.

The casualities I believe were Gold Spot and Limca (although the latter did make a reapparearance if I am not wrong albiet briefly!)
 
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HAWK21M
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RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 5:44 pm

The KF-IC deal will only be temp until KF gets stablized.
If you've tasted Thumbs-up you'll know why it beats Coke & Pepsi  Smile
Parking at Nights is still a problem for KF A320.At times they are dumped at the IC Mx Hangar to be towed for morning Departure.

regds
MEL
I may not win often, but I damn well never lose!!! ;)
 
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AirIndia
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RE: Kingfisher-Indian Airlines Get Closer

Tue May 31, 2005 6:28 pm

Quoting HAWK21M (Reply 7):
If you've tasted Thumbs-up you'll know why it beats Coke & Pepsi

well put..!
 
LAXDESI
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Posts: 2775
Joined: Sat May 14, 2005 8:13 am

RE: Kingfisher-Indian Airlines Get Closer

Wed Jun 01, 2005 12:49 am

Quoting HAWK21M (Reply 7):
Parking at Nights is still a problem for KF A320.At times they are dumped at the IC Mx Hangar to be towed for morning Departure.

Will the terminal sharing deal solve the problem or not?
 
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HAWK21M
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Joined: Fri Jan 05, 2001 10:05 pm

RE: Kingfisher-Indian Airlines Get Closer

Wed Jun 01, 2005 1:15 am

Quoting LAXDESI (Reply 9):
Will the terminal sharing deal solve the problem or not?

Priority is still given to IC Aircraft for night halts.
Maybe the Additional Bays being constructed will ease things,but that would be ready only around October.
regds
MEL
I may not win often, but I damn well never lose!!! ;)

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