Kingfisher buys long-haul planes for US flights

Planes to land by 2008; Kingfisher hopes to get permits for overseas foray by then

BY A CORRESPONDENT
April 25, 2006

Kingfisher Airlines has signed a deal with Airbus to acquire five Airbus 340-500 aircraft for one billion dollars. Delivery of the planes will start from 2008. Kingfisher plans to deploy the aircraft in the India-US sector. Rolls Royce Trent-500 engines, which are believed to consume less fuel, will be powering these aircraft, Kingfisher Airlines said in a press release.

At present, Kingfisher Airlines does not have rights to fly abroad. The only Indian private airline which has overseas flying permit is market leader Jet Airways. Kingfisher hopes to get the requisite permissions by the time it receives the aircraft. it is planning to fly to New York and San Francisco.

In addition to the firm order for five aircraft, Kingfisher Airlines also has options for adding another five Airbus 340-500 aircraft.

Kingfisher Airlines chairman and managing director Vijay Mallya signed the deal with Gustav Humbert, President and CEO of Airbus at a ceremony in Hanover.

Kingfisher is also in talks with unnamed US airline for starting flights to US. According to the terms of the deal, this airline will use the new Kingfisher planes to fly to India under the Kingfisher Airlines brand, if Kingfisher fails to receive the permission to fly overseas by then.

Said Vijay Mallya: "With the A340-500 ultra long-haul aircraft, it is our intention to open up a completely new market. For the first time, we will be able to offer direct non-stop services between India and the USA and our A340-500 will have a unique configuration, giving passengers extra space and comfort on their long haul flights" .

Said Gustav Humbert: “This purchase is further evidence of the confidence that an increasingly successful airline such as Kingfisher Airlines shows in our modern family of aircraft. We have built a strong relationship with Kingfisher Airlines and we are delighted that once again Kingfisher Airlines has chosen Airbus to help build its rapidly expanding fleet.”