Report: Air Deccan promoters not to offload stake to UB Holdings, will raise fares

London: Deccan Aviation chairman, GR Gopinath, has said that none of its promoters would sell their stake in Air Deccan to Vijay Mallya's UB Holdings, should it fail to mop up the required 20 per cent stake from the open market. This assertion puts to rest media speculation that a11.38 per cent stake, held by Air Deccan promoter SL Ladhani and his family, may also be offloaded to UB Holdings.

The lock-in period for the stake held by SL Ladhani and his family members ended on June 2.

A Thomson Financial News (TFN) report quotes Capt Gopinath as saying that the company may soon raise fares by about Rs600-1,000. Capt Gopinath was speaking to TFN after the company's shareholder meeting.

According to the report, Gopinath also said that the low cost carrier's maiden international flight would be to the Middle East, followed by Singapore and Bangkok.

Air Deccan completes five year of service as a carrier in 2008, when as per existing industry rules in the country, it can grow out of its domestic carrier status and begin international operations.

Deccan Aviation had sold a 26 per cent stake to UB Group company, Kingfisher Airlines, on May 31.

Together, the Kingfisher-Air Deccan combine have the largest fleet, route network and market share in India with 71 aircraft, 70 destinations and a 33 per cent market share.