UB Group chairman Vijay Mallya today said the carrier has asked consulting firm Accenture to study the integration of the Kingfisher and Simplifly Deccan (the low cost carrier) including the possibility of a merger between the two.Mallya's statement is contrary to his earlier public position that the two airline companies would be kept as separate entities."We have appointed Accenture to advise on the integration of two airlines. We will take a future course of action after a report from it in the next six weeks," said Mallya on the sidelines of Fortune Global Forum here.Ravi Nedungadi, CFO, UB Group, told Business Standard: "Accenture has been told to look at different ways of integration of the two airlines including the possible option of a legal merger." This is the first time that a legal merger between the two airlines is being looked at.However, Air Deccan chairman G R Gopinath - who sold majority equity in the company to Mallya pointed out: "The mandate to Accenture is clear - it is about suggested ways to integrate the operations of the two airlines. However if it decides to recommend a merger then I will consider it at that time. I will do whatever is good for the company".Around June this year, UB Group had acquired 26% stake in Deccan Aviation for Rs 550 crore valuing the company at Rs 2200 crore. The group recently made an open offer of a further 20% which would cost it Rs 420 crore. Mallya had said in August that Deccan could be also made a subsidiary though it would retain its low cost model.Talking to reporters today, Mallya also said that UB Holdings is planning to raise Rs 1000 crore through qualified institutional payment (QIP) of which he would use Rs 720 crore to maintain his shareholding in the group.Regarding international operations, Mallya said Kingfisher is planning to start operations to the US, Middle East and South East Asian destinations by the middle of next year using Air Deccan's licence. Air Deccan will have completed five years of domestic operations by the middle of next year and will thus be eligible for international operations.Post-Deccan buy, the Kingfisher-Deccan combine will be the largest domestic airline in India controlling 32% market share with a fleet of 71 aircraft, including 41 Airbus aircraft and 30 ATR aircraft.
