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Israel Aircraft India Ltd Jobs
Industry : Airlines & Aviation
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Air Deccan slaps congestion cess
IT IS a way of showing who calls the shots. Air Deccan, the country's largest low-cost carrier, in which liquor king Vijay Mallya took 26% stake last week for Rs 550 crore, re-imposed the congestion cess of Rs 150 per passenger from Tuesday.
This is the first in a series of measures the UB chief is likely to introduce in the coming weeks to turn around Air Deccan. "We have decided to focus on making Air Deccan's operations profitable this year and this may involve taking some hard decisions,” a senior UB Group executive told ET. Imposition
MALLYA BOOKS 26% IN AIR OECCAN FOR 550 CR
THE king of good times, Vijay Mallya, appears to be interested in low-brow stuff as long as it makes business sense. He has struck a deal to pick up 26% in a preferential allotment by Air Deccan, which clearly gives him an opportunity to gain management control over the company that pioneered low-cost flying in the country.
The deal comes at a cost of Rs 550 crore (Rs 155 per share in the company) and will require him to make an open offer to pick up another20% stake.
Mr. Mallya's UB Holdings, which made
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