Air Deccan to remain low-cost carrier: Gopinath

Air Deccan will retain its business model as a low-cost carrier, chairman G R Gopinath said today.

Asked whether Deccan would consider the option of a merger or a reverse merger with Kingfisher Airlines, Gopinath said: "We will continue to be different brands, entities and products. Kingfisher will continue to be a full-service carrier while Deccan will be on the other side of the spectrum. Otherwise, such a large amount of money would not be spent on the rebranding exercise."

Kingfisher and Deccan had appointed Accenture to study the structure of the merger of the two airlines including operational synergies, network rationalisation and management structure.

"The report will be studied by Dr Mallya and myself and then by the board of directors. Only then will a decision be taken on the issue,"Gopinath said.

Gopinath also said that Deccan, in association with Mumbai Airport International, IDFC and the Rahejas, has expressed interest in low cost airports put up for development by the Karnataka government recently.

The government had invited bids for the development of airports at Gulbarga, Bijapur and Shimoga. Apart from the Deccan consortium, the Tata-Changi consortium is among the prominent bidders for the projects.