G R Gopinath, the founder-mentor of the ?billion seats? dream in India?s first low-cost airline Air Deccan, is officially pulling out of the company?s helm, hardly four months after its board approved a merger with premium carrier Kingfisher. On Friday, the board of Deccan Aviation said that it approved a letter from Gopinath requesting to remove his name from the promoter group of the company.
Gopinath told FE that that his removal from the promoter group was necessary to enable Kingfisher to acquire more shares in the company, which he founded over five years ago. ?Sebi guidelines do not allow promoters to hold more than a certain share in the company. I hold 8% in the company now, and the other original promoters hold close to 20%. Kingfisher acquired 46%. Once the merger of the two companies happen, the total promoter stake will go up as there would be multiple promoters.? He maintained that he would not sell off his shares in Deccan.
?Now that I allowed Air Deccan to merge with Kingfisher, removing my name from the promoter group would not make much difference. I do not plan to sell off my shares in Deccan,? he said.
Describing himself a ?first generation entrepreneur?, Gopinath had earlier told FE that he would step down from Deccan and look at other businesses. ?My aim is to lead Air Deccan from the front and establish it as a company with great enduring value. Then I would have achieved my dreams,? he had said.
Gopinath had pioneered low cost flying in India in August 2003, when he founded Air Deccan, positioned as the common man’s carrier. The board of Deccan also approved the removal of other original promoters including K J Samuel and Vishnu Singh Rawal, from the promoter category of the board.
