LAXDESI
Topic Author
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Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 9:40 am

Kingfisher looking to buy Spice Jet. Kingfisher will be the premium carrier and Spice Jet will be the no frills carrier. Link:
http://timesofindia.indiatimes.com/articleshow/1423311.cms

Quotes:
It's raining mega deals from the Indian skies. Though the promoters are vehemently denying it, the airspace is abuzz with talks of liquor baron and Kingfisher Airlines chief Vijay Mallya - having lost the race to buy Air Sahara - now eyeing the no-frills rival, SpiceJet. The purchase, market sources say, is part of Mallya's plans to grow his share of the domestic airline industry pie through the "inorganic route".

Mallya's plan of action, sources say, is to initially acquire the 40% stake held by Royal Holdings - a Nevada-based company floated by non-resident Indian Kansagra family - in SpiceJet. Later, he plans to buy S K Modi family's stake which is under litigation, and slowly hike his holding to around 51%.

Besides adding to his share of India's domestic aviation pie, the acquisition would help Mallya use Kingfisher Airlines to focus solely on the upper-end of the air travel market as a full-service carrier while SpiceJet targets the no-frills market. Mallya is also planning to introduce first-class in Kingfisher Airlines to woo upper crust travellers who are willing to pay more for better services.

For the Kansagra family too, sources say, the deal holds good as the growing competition has considerably shrunk margins and returns. The NRIs - who bought the erstwhile Modiluft at Rs 12 per share - have seen their value scaling up to Rs 60 a share in just 24 months. And selling out when the market is still in a boom phase would help them gain maximum value for their holding,"says a source.

The only misfit, probably, is SpiceJet's Boeing aircraft fleet as opposed to Kingfisher's Airbus fleet. Sources say this is unlikely to derail the exercise as even Sahara - which Mallya was trying to buy a few months back - operates Boeing planes.
 
DIJKKIJK
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 9:54 am

If you ask me, he is more likely to acquire Air Deccan.

They fly A320s which KF also does, and Air Deccan's experiences with ATR-42 will come in handy when those ATR-72s are delivered.
Never argue with idiots. They will bring you down to their level, and beat you with experience.
 
LAXDESI
Topic Author
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 10:10 am

Quoting DIJKKIJK (Reply 1):
If you ask me, he is more likely to acquire Air Deccan.

I doubt if the promoter of Air Deccan, Mr. Gopinath, wants to sell at this stage. Air Deccan is planning its IPO shortly.
 
aseem
Posts: 1971
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 11:56 am

Boeing and Airbus is not an issue here because as mentioned in the article, SpiceJet will remain as no-frills entity and Kingfisher will concentrate on full service. He is just buying a stake in different company, and merger is not being talked of.
rgds
VT-ASJ
ala re ala, VT-ALA ala
 
behramjee
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 12:05 pm

In Toronto recently on the ATN channel i.e. Asian Television Network, they had an interview with Mr Mallaya himself who said that 3 Indian airlines will merge to effectively compete against 9W's market share dominance in the domestic market. Those 3 were Spice Jet, Kingfisher and Air Deccan.
 
aseem
Posts: 1971
Joined: Tue Feb 01, 2005 12:39 pm

RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 12:31 pm

Quoting Behramjee (Reply 4):
Those 3 were Spice Jet, Kingfisher and Air Deccan.

Did he name them? I hope you're not confusing it with the meeting they had to formulate some synergy.
rgds
VT-ASJ
ala re ala, VT-ALA ala
 
Nimish
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 3:38 pm

I doubt if Mallya will have to money to buy all the a/c he's already ordered (or ordering) and a couple of airlines as well. But if he does - good luck to him!
Latest Trip Report - GoAir BLR-BOM-BLR
 
757ops
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 9:17 pm

In reply to this thread i sincerely hope that 0S stays as it is now if it does happen to be taken over. I was over in India last week and flew 0S from DEL to BOM via Ahmedebad (AMD) the aircraft was full on both sectors (as wth most Indian domestic flights) but the aircraft was spacious and new (737-800W) with full leather seating, i am 6'3" and i could fully lie out and sleep! but the most important difference with SpiceJet is that it is the only Indian airline not to discriminate against non-indian residents when purchasing tickets. I looked at Kingfisher, Air India, Jet, Air Deccan and Air Sahara and all wanted at least USD220 per passenger for non-indian residents but only INR3000 for Indian nationals but SpiceJet asked the INR2500 per passenger (USD53) for all nationals. The service was excellent and I would recommend them to anyone.
 
Gr8Circle
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RE: Kingfisher To Buy Spice Jet?

Wed Feb 22, 2006 11:02 pm

Beer and spices always go well with each other Big grin

Quoting 757ops (Reply 7):
SpiceJet is that it is the only Indian airline not to discriminate against non-indian residents when purchasing tickets. I looked at Kingfisher, Air India, Jet, Air Deccan and Air Sahara and all wanted at least USD220 per passenger for non-indian residents but only INR3000 for Indian nationals but SpiceJet asked the INR2500 per passenger (USD53) for all nationals. The service was excellent and I would recommend them to anyone.

Very important point....I didn't know this....hope it is the way things go in future...this discrimination is really senseless.....however, recently, the PM himself has pointed out this practice in front of Parliament and directed that this should be discontinued (extends to airlines, hotels, railways, tourist destinations and a lot of other establishments)...
 
LAXDESI
Topic Author
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RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 12:21 am

Quoting Gr8Circle (Reply 8):
the PM himself has pointed out this practice in front of Parliament and directed that this should be discontinued (extends to airlines, hotels, railways, tourist destinations and a lot of other establishments)...

Did he propose any legislation or is he hoping to use the bully pulpit to acheive the same?

Quoting Gr8Circle (Reply 8):
Beer and spices always go well with each other

Good one.
 
aseem
Posts: 1971
Joined: Tue Feb 01, 2005 12:39 pm

RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 12:34 am

Quoting Gr8Circle (Reply 8):
extends to airlines, hotels, railways, tourist destinations and a lot of other establishments)...

it was never in railways dude!! One saving grace...
VT-ASJ
ala re ala, VT-ALA ala
 
JBOND
Posts: 111
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RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 2:10 am

1st ATR72 in full Kingfisher cls seen at TLS.
 
Gr8Circle
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RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 3:32 am

Quoting LAXDESI (Reply 9):
Quoting Gr8Circle (Reply 8):
the PM himself has pointed out this practice in front of Parliament and directed that this should be discontinued (extends to airlines, hotels, railways, tourist destinations and a lot of other establishments)...

Did he propose any legislation or is he hoping to use the bully pulpit to acheive the same?

Well, honestly, what I read was that at this point, he just made a reference to the issue.....legislation may take a looooong time....still, atleast they are talking about it....
 
atcrick
Posts: 719
Joined: Mon Jun 28, 2004 1:05 pm

RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 3:47 am

Quoting 757ops (Reply 7):
In reply to this thread i sincerely hope that 0S stays as it is now if it does happen to be taken over. I was over in India last week and flew 0S from DEL to BOM via Ahmedebad (AMD) the aircraft was full on both sectors (as wth most Indian domestic flights) but the aircraft was spacious and new (737-800W) with full leather seating, i am 6'3" and i could fully lie out and sleep! but the most important difference with SpiceJet is that it is the only Indian airline not to discriminate against non-indian residents when purchasing tickets. I looked at Kingfisher, Air India, Jet, Air Deccan and Air Sahara and all wanted at least USD220 per passenger for non-indian residents but only INR3000 for Indian nationals but SpiceJet asked the INR2500 per passenger (USD53) for all nationals. The service was excellent and I would recommend them to anyone.

There are airlines out there charging more based on where you are from? Well, strike those of my list of possible carriers. Thats nonsense.
natch!!
 
LAXDESI
Topic Author
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RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 4:20 am

I hold a US passport and buy my domestic sector tickets in India in rupees from travel agents. I have never been asked for an ID at the time of purchase/check-in/boarding-why is that? I guess being of Indian heritage helps. Once in Bombay I checked into a hotel and put down my Chennai address by designating it as Madras. The hotel wanted to know if I was a foreigner and wanted to charge me accordingly in dollars. I was able to convince him that I was not and that I had no ID on me. I have been writing down Chennai instead of Madras since then.
 
LAXDESI
Topic Author
Posts: 2775
Joined: Sat May 14, 2005 8:13 am

RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 4:29 am

Spice Jet denies interest in selling stake to Kingfisher. Link:
http://www1.economictimes.indiatimes.com/articleshow/1424518.cms

Quotes:
Promoters of low-cost carrier SpiceJet on Wednesday said they had no plans to sell their strategic stake to any airline. "The Kansagra family is fully committed and confident about the project and have no plans for divestment especially when the airline is performing well and is moving towards profitability," SpiceJet Director Bhulo Kansagra said in a statement.

The statement came in the wake of a report that liquor baron Vijay Mallya's Kingfisher Airline was interested in picking stake in the carrier.
 
nikeshashar
Posts: 51
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RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 4:46 am

Quoting LAXDESI (Thread starter):
Kingfisher Airlines chief Vijay Mallya - having lost the race to buy Air Sahara -

If you do some research he did not LOSE the race to but Sahara but pulled out . FYI

Quoting 757ops (Reply 7):
In reply to this thread i sincerely hope that 0S stays as it is now if it does happen to be taken over. I was over in India last week and flew 0S from DEL to BOM via Ahmedebad (AMD) the aircraft was full on both sectors (as wth most Indian domestic flights) but the aircraft was spacious and new (737-800W) with full leather seating, i am 6'3" and i could fully lie out and sleep! but the most important difference with SpiceJet is that it is the only Indian airline not to discriminate against non-indian residents when purchasing tickets. I looked at Kingfisher, Air India, Jet, Air Deccan and Air Sahara and all wanted at least USD220 per passenger for non-indian residents but only INR3000 for Indian nationals but SpiceJet asked the INR2500 per passenger (USD53) for all nationals. The service was excellent and I would recommend them to anyone.

The same applies to Jet Airways. If you log onto their website their pricing structure depends on what timezone your computer is on. IE set it to GMT and you will get prices in USD and set it to IST you will get it in INR. This should be stopped cos its just slowing tourism. I am of Indian origin and can speak Hindi and Gujarati fluently and I have still been asked for ID when I went to the Jet desk at BOM to pick up local tickets. Told them to stuff it and went with Spice instead.
 
LAXDESI
Topic Author
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RE: Kingfisher To Buy Spice Jet?

Thu Feb 23, 2006 10:05 am

Quoting Nikeshashar (Reply 16):
If you do some research he did not LOSE the race to but Sahara but pulled out . FYI

Kingfisher did not match/exceed a higher bid by Jet and announced that it was pulling out of the race. In my book Kingfisher lost the race to buy Sahara.

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