Delhi-London route: Nacil opposes Kingfisher

Mumbai: State-owned National Aviation Co. of India Ltd (Nacil), which runs flag carrier Air India, has written to the ministry of civil aviation asking it not to allow Kingfisher Airlines Ltd to operate on the New Delhi-London route, said two Nacil executives familiar with the matter. Nacil noted in the letter that Kingfisher Airlines, India’s second largest carrier by passengers flown, was already discontinuing its Bangalore-London service because of mounting losses.
The letter cited excess capacity on the India-UK sector and potential losses to Nacil should Kingfisher also be allowed to fly New Delhi-London, said the two executives, who didn’t want to be named because they are not authorized to speak to the media.
“Adding more capacity on New Delhi-London route will result in further losses for all carriers operating in that sector,” one of the executives said.
Getting approval to fly on the new route is important for Kingfisher Airlines, controlled by billionaire liquor baron Vijay Mallya, to keep its landing slot at London’s Heathrow airport, which will fall vacant once it ceases its Bangalore-London flights. Airport slots are hard to come by at Heathrow, and Kingfisher had bought the slot from KLM Royal Dutch Airlines in early 2008 for an undisclosed sum.
Kingfisher Airlines, Jet Airways (India) Ltd, British Airways Plc. and Virgin Atlantic Airways Ltd operate on the India-UK route.
In a statement on 11 July, Kingfisher Airlines said it would suspend its Bangalore-London flights and its Colombo-Bangalore feeder service beginning 15 September. The airline said it had applied to the ministry of civil aviation to start operations on the New Delhi-London sector and that it would announce launch dates once it got the go-ahead.
24/08/09 P.R. Sanjai/Livemint

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Categories: Kingfisher Aug 2009, NACIL Aug 2009, ug