Gopinath wants Air Deccan back- describes Jet-KF deal as long-term monopoly

Mumbai: The cat would appear to have been set amongst the pigeons with a combative Capt GR Gopinath, vice chairman, Kingfisher Airlines, finally speaking his mind on the freshly struck Jet Airways-Kingfisher Airlines alliance and offering to buy back erstwhile Air Deccan in case founder-promoters Naresh Goyal and Vijay Mallya were not interested in pursuing the low cost model.

Air Deccan is now re-branded Kingfisher Red.

In strongly worded comments made to the media this afternoon Capt Gopinath said since it was apparent that both the flamboyant Vijay Mallya and Jet promoter Naresh Goayal were openly contemptuous of the low cost model, they could possibly be interested in handing Air Deccan back to him. He said though he didn't have the money investors would be willing to step forward in case he decided to resume operations as a low cost operator with Air Deccan.

In a stunning development Monday, India's largest private carriers Kingfisher and Jet Airways announced an operational alliance, involving code-share, common ticketing, ground services and joint fuel management.

Through a joint statement issued Monday Mallya and Goyal said the alliance would work together "in larger national interest and help stabilise India's aviation sector."

This is an interpretation that Capt Gopinath has now chosen to contest.

Speaking to television channels Gopinath said the code-sharing alliance between Kingfisher and Jet Airways would create a monopoly, and hurt the interests of the industry as a whole. "A long-term monopoly is not good for the country, not good for the consumer, neither is it good for the airline industry itself," he said. He said he would be opposed to any such monopoly.

He also said he would want to buy back Air Deccan. "If both Vijay Mallya and Naresh Goyal ...want to exit the low-cost model because they think it is embarrassing for them, then let me buy it back," he said. "It can't be a hostile takeover since Vijay Mallya owns more than 60 per cent stake, but if he wants to exit the space then it (Air Deccan) should be spun off into a separate entity. Even he (Mallya) will get the money that he needs," Gopinath said.

"Even when I started Air Deccan, I did not have any money, still people put money in my airline," he added.

Gopinath, a pioneering personality in the landscape of Indian aviation said the budget carrier model was a sustainable one and repeated fare hikes was the reason for occupancy rates to go down.