Indian Airline Head Hires Accenture SHAKERS MARKETPLACE By Bloomberg

By Subramaniam Sharma

The Indian billionaire Vijay Mallya said Tuesday he had hired Accenture to advise on the reorganization of his airline business after he took control of Deccan Aviation to form the second-biggest domestic airline group in India.

Mallya, chairman of UB Group, said Accenture would submit a report in six weeks about how best to combine operations at the low- fare carrier Deccan and his Kingfisher Airlines. UB, based in Bangalore, also said it would sell shares and allow more foreign investors to buy stock, seeking to capitalize on a record equity rally to raise funds for expansion.

By hiring Accenture, which advised the Indian government on combining its two airlines, Mallya is trying to cut operational and maintenance costs in an industry that lost $500 million last year. Deccan Aviation has sought permission from the government to fly overseas, including to the United States, Middle East and South East Asia, Mallya said.

“Accenture is going to give us a report and based on the report we will take further steps,” Mallya said.

UB Group, which diversified to start an airline in 2005, last week gained control of 46 percent of Deccan Aviation after purchasing additional shares in an open offer.

Accenture last year won a mandate to advise India’s government on the merger of the state-owned carriers Air India and Indian Airlines.

India in 2005 allowed private airlines with more than five years of domestic operations to start flights overseas. Jet Airways (India), the biggest domestic carrier, and Jetlite are the only private Indian carriers flying on international routes.

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Subramaniam Sharma

Originally published by Bloomberg News.

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