Aircraft maker cancels Kingfisher's 38-plane order

Mumbai: Plane manufacturer ATR has cancelled Kingfisher Airlines's order for 38 ATR-72 turboprop planes as the carrier failed to make certain pre-delivery payments. Kingfisher, which is facing an acute cash crunch and seeking urgent cash infusion, has a fleet of 64 planes including 26 ATR planes. However nearly 20 of them have been grounded for want of spares.
According to ATR spokesperson David Vargas an order of 65 planes was placed in 2005-06. Air Deccan ( prior to take over) had ordered 35 planes and the rest were ordered following by Kingfisher. Twenty seven planes have been delivered.
"We didn’t think the situation of Kingfisher today was such that in a short time they’d be in a position to take additional planes,” ATR Chief Executive Officer Filippo Bagnato said in Paris on Wednesday, he said. “There were issues with the continuity of pre-delivery payments,'' he added. Kingfisher spokesperson refused comment on the issue.
ATR has been negotiating with Kingfisher for about two years over plane deliveries, according to the plane maker, a joint venture of European Aeronautic, Defence & Space Co. and Finmeccanica SpA (FNC) of Italy.
20/01/12 Business Standard

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Categories: Kingfisher Jan 2012