Deccan Aviation’s annual general meeting is also scheduled for Wednesday and Accenture recommendation will come up for discussion there as well. Deccan Aviation has confirmed the agenda of the meeting to the stock exchanges.

Deccan Aviation had engaged the services of management consulting agency Accenture to recommend ways and means to get the maximum benefits from the proposed Deccan-Kingfisher merger.

Meanwhile, the recommendations will be considered by the UB Holdings board that controls the Kingfisher Airlines at an emergency meeting on Wednesday. However, the terms and conditions of the merger of the two domestic airlines will be finalized by a financial consultancy the UB board plans to appoint after Wednesday’s meeting.

Market analysts have, however, said that there is no possibility of Kingfisher Airlines merging with Deccan Aviation owing to problems arising out of taxation hurdles.

Kingfisher Airlines has suffered losses worth Rs 1200 crore compared to Rs 800 crore losses borne by Deccan Aviation. According to sources, the merger of the two airlines is expected to be complete by the end of the current fiscal through clever tax planning.

In the meantime, the possible merger has raised the share prices of Deccan Aviation at the Bombay Stock Exchange. The share prices soared 11.5 percent and ended at Rs 316.60 at close on Tuesday. Earlier, it touched a record of Rs 320.70.

This has led the market analysts to predict high gains for Deccan Aviation in the future after it implemented a number of measures such as route dispersal plans as well as the combine’s possibility to fly overseas after the merger. When all these are accomplished, market analysts foresee a revenue hike for the company by about Rs 320 crore.

It may be mentioned here that the UB Holdings of Vijay Mallya has acquired 26 percent stake in Deccan Aviation earlier this year and now holds 46 percent state in the Bangalore-based company. Both the companies are looking forward to the merger with a view to take on the Jet Airways-Jetlite as well as the state owned Air India for the maximum share of the aviation market.
 

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