Jet-Kingfisher to merge? Goyal, Mallya to make joint statement (Lead)

October 13th, 2008 - 11:32 pm ICT by IANS  

Mumbai, Oct 13 (IANS) Kingfisher Airlines Chairman Vijay Mallya and his Jet Airways counterpart Naresh Goyal are expected to make a joint statement late Monday night on a possible merger of the two airlines.If the merger materialises, it will mark one of the biggest consolidations in the country’s aviation space. Mallya and the London-based Goyal met earlier in the day, triggering rumours of a possible merger.

Shares of the two airlines went up Monday on rumours of a possible merger to trigger yet another consolidation bid in the country’s aviation space.

The Kingfisher scrip was up a whopping 32.35 percent at Rs.51.35, while that of Jet moved up by 11.12 percent at Rs.291.80, as per data with the Bombay Stock Exchange.

Jet Airways had recently scrapped its Mumbai-San Francisco flight, just seven months after its launch, while Kingfisher has postponed the launch of services on several international routes even after obtaining permission to fly.

Most Indian carriers including Jet Airways and Kingfisher have also been trying to raise money the past few months, but without much success.

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