"Deccan has struggled this year, and sold a 26% stake to Mr Mallya's UB group in June, which was raised to 46% in October.
"The merger will bring about synergies across the board and lower the cost of operating both airlines," Deccan founder GR Gopinath said.
Next August will mark five years of Deccan operating, which means that under Indian law, it can then fly lucrative overseas routes.
Kingfisher will also gain this privilege as part of the merger."
These are two very different types of airline, aren't they - Deccan being described as an LCC. Does Kingfisher really want Deccan or is the attraction that Deccan will soon have the right to operate internationally?
Am I right in thinking that Kingfisher has some widebodies arriving in 2008? If I am, what else could they be used for except international flights? Kingfisher has no option but to take a controlling interest in Deccan, surely?