Kingfisher may face higher cost pressures

Bangalore: Kingfisher Airlines could face additional cost pressures as insurance premiums may harden for the airline once it comes up for renewal in June. Reinsurance brokers say the airline has made a claim of $17 million for extensive damage caused to its turboprop ATR that flew from Bhavnagar to Mumbai in 2009.
According to the Directorate General of Civil Aviation (DGCA), Kingfisher Airlines ATR-72 operating on the Bhavnagar -Mumbai sector skidded off the runway during landing at Mumbai Airport. The aviation regulator has classified this as "accident'' in its recent report contrary to the earlier classification as "incident.'' Industry sources attribute this accident as one of the factors that will push up insurance premiums by at least 10%.
A detailed questionnaire sent to the airline didn't elicit any response. The second-largest carrier coughed up Rs 56 crore towards aviation insurance in the 2010 fiscal compared to Rs 52 crore previously.
Airline spokesperson Prakash Mirpuri said, "Our marginal increase in insurance costs in FY 2010 over FY 2009 is mainly on account of increased wide-body aircraft deployment.'' Kingfisher has a fleet of 66 aircraft that includes two ATR 42-500s and 8 units of ATR 72-500s. Plus, it has added 10 units of A320s from the Air Deccan fleet.
03/02/11 Shilpa Phadnis/Times of India

To Read the News in full at Source, Click the Headline

Categories: Kingfisher Feb 2011