Kingfisher may stagger Airbus deliveries

[Pieter C. 5]

Kingfisher May Stagger Airbus Deliveries

 

June 12, 2007

Kingfisher Airlines is likely to stagger taking delivery of Airbus aircraft it had ordered as its recent stake acquisition in Deccan Aviation altered demand outlook, its chairman said on Tuesday.

 

"Between the two of us, we have 88 Airbus aircraft scheduled to come between now and 2011," Vijay Mallya told reporters.

 

"Whether they should come on the current delivery schedule, or adjust it to suit our demand is a point we need to decide."

 

Last month, Kingfisher agreed to buy a 26 percent stake in Deccan Aviation, a budget carrier that has been making losses.

 

It is also offering to buy 20 percent more from minority holders of Deccan to fulfill regulatory requirements.

 

The two firms together have a fleet of 71 aircraft.

 

Deccan may raise airfares by about 500 rupees in order to stem losses, Mallya said.

 

"We cannot continue to sell tickets at a loss. So Deccan has to raise prices," Mallya told reporters on the sidelines of an aviation conference. "It is inevitable."

 

Kingfisher, Mallya said, could focus on large cities and long-haul and ultra long-haul overseas routes, the latter subject to government policy and approvals, Mallya said.

 

On the other hand, Deccan would focus on smaller cities in India and routes to the Middle East, South Asia and Southeast Asian countries, he added.

 

Mallya said he had spoken to Deccan's founder G.R. Gopinath about the need to raise airfares.

 

"They only need to charge 500 rupees a ticket more to be profitable," he said.

 

(Reuters)

 

[Pieter C. 5]

Kingfisher In USD$7 Bln Airbus Deal

 

June 20, 2007

India's Kingfisher Airlines on Wednesday announced a preliminary USD$7.2 billion deal to buy Airbus aircraft including an extra 15 A350-800 XWB jets worth USD$3 billion.

 

The order also includes five four-engine A340-500 planes, 10 A330-200 wide-body models and 20 single-aisle A320-family jets.

 

The order is worth a total of USD$7.2 billion at list prices.

 

Kingfisher had already ordered 5 of the original version of the A350 and has upgraded these orders to the plane maker's redesigned A350 XWB model. The new order for 15 A350 XWBs brings the total commitment for the aircraft to 20.

 

Kingfisher said it has ordered two versions of Rolls-Royce's Trent engines to power the Airbuses in a deal worth USD$1 billion at list prices.

 

Airbus has redesigned the A350 to boost flagging sales, dubbing its new version the Xtra Wide Body or XWB.

 

(Reuters)

 

[Pieter C. 5]

Kingfisher Defers Some Airbus Deliveries

 

August 27, 2008

Indian carrier Kingfisher Airlines has deferred deliveries of some Airbus aircraft, wary of overcapacity as airlines struggle to cut costs to offset high fuel prices and softer demand.

 

The airline, a unit of alcoholic drinks maker UB Group, has negotiated with Airbus to defer deliveries of 32 A320-family aircraft to 2010-12 from 2008/09, chief financial officer Ravi Nedungadi said on Wednesday.

 

Also, five of the 10 long-haul A340 aircraft on order have been converted to A330-200s, he said.

 

Kingfisher, which is scheduled to launch its inaugural international flight from Bangalore to London on September 3, is also negotiating to sell two of the remaining five A340s on order, leaving three for its planned operations to the United States.

 

"We are already looking at overcapacity in the industry," Nedungadi said.

 

Kingfisher, which owns discount carrier Deccan Aviation, has five A380 superjumbos on order, scheduled for delivery from 2012, as well as 20 A350 aircraft scheduled for delivery from 2013.

 

It also has a further 20 A330-200 aircraft on order, making it one of the single largest stakeholders in the Airbus order backlog by number of planes.

 

The Indian aviation industry lost USD$700 million in 2007/08 and is widely forecast to double losses in 2008/09. Airlines have cut loss-making routes and raised fares to offset rising jet fuel prices and softer demand.

 

(Reuters)

 

[Ashmil Abd Ghani 0]

Emm look here..Kingfisher as I can see want to follow SIA also Emirates foot step with buying what ever newly introduce planes..By end of day, they dont know what to do,look like Kingfisher wrongly estimate and predict the market growth in India..

 

has negotiated with Airbus to defer deliveries of 32 A320-family aircraft to 2010-12 from 2008/09

 

What normally Airbus S.A.S will do if the airline company defer or refuse to accept the aircraft which it the company had order??I believe most of the Kingfisher's A320 now in production line and may complete according to schedule but now Kingfisher want the aircraft in next 2 years time..

 

Did Airbus will set a penalty for that??

[BC Tam 2]

Good opportunity for Dato TF to snap up a couple of A340's, needed to do the London Stanstead runs we have been made to believe

[Pieter C. 5]

Kingfisher Plans USD$400 Mln Equity Increase

 

September 2, 2008

Indian carrier Kingfisher Airlines plans to raise USD$400 million by selling equity to help fund its expansion, its chief executive said on Tuesday.

 

Kingfisher Airlines, which owns discount carrier Deccan Aviation, expects to turn profitable in the next 18-24 months, Vijay Mallya said.

 

"We have always confirmed that we will raise equity, particularly now that both the airlines are one and it is so big," he told reporters at a news conference for the launch of the airline's first international flight.

 

He said several investors were interested, but declined to set a timeframe for the fund raising, saying the company would wait for the market conditions to turn positive.

 

"Everything depends on the right value... whether we will do straight equity or part-convertible or raise money in convertible alone," he said.

 

Falling crude prices were positive for the airline and Mallya said the company was also taking measures to cut costs and boost efficiency to improve earnings.

 

Oil prices have fallen to under USD$110 a barrel after hitting a record peak above USD$147 in mid-July.

 

"Things are heading in the right direction," he said. "There is a greater chance of break-even in the next 18 to 24 months."

 

(Reuters)