Kingfisher in course correction mode

New Delhi: Aircraft maker Airbus SAS has sold two A340 passenger planes meant for delivery to Kingfisher Airlines Ltd to government buyers in West Asia, an executive at the European plane manufacturer said.
Kingfisher is separately trying to sub-lease two more A330 planes from its fleet to Nigerian carrier Arik Air Ltd, the Indian carrier said in a statement last fortnight.
The deals indicate that billionaire businessman Vijay Mallya-run Kingfisher may be winding down its once-ambitious plans to fly to international destinations such as San Francisco, Hong Kong, Singapore, Bangkok, Kuala Lumpur and Kuwait, among others.
The airline, including its low-cost service Kingfisher Red, currently connects Indian locations with two foreign cities: London and Colombo.
It was not immediately clear if Kingfisher made any money on the sale of the two A340 planes to the buyers in West Asia. Typically, airline customers book a plane by paying a small amount, making good the remaining on delivery, mostly through debt. If there is a huge demand for planes, then those who have booked them get a commission on such sales.
Mumbai-headquartered Kingfisher had ordered 10 long-haul aircraft to start its international operations last year including five A340s—capable of flying routes such as Bangalore-San Francisco non-stop—and five A330s, which ply typically between India and Europe.
It sold three of the A340 planes to Arik Air last year and, after keeping two A330s grounded for at least six months in India, is now in talks to sub-lease them to the same carrier.
Two A330s are being used by Kingfisher to operate between Mumbai and London and ply the Bangalore-London route with one aircraft as a standby.
The two A330s to be sub-leased out by Kingfisher were expected to be utilized by the airline on Hong Kong and Singapore flights from Mumbai, which the airline had planned to launch by January-end.
With no new deliveries slated until next year, Kingfisher may restrict its international operations to London and Colombo though it can fly to West Asia and Asia-Pacific using some of the 43 medium-haul Airbus A320 in its fleet.
16/03/09 Tarun Shukla/Livemint

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Categories: Kingfisher Mar 2009