The Hindu Business Line : Kingfisher Airlines' launch put off to April 2005

The Chairman of the UB group, Mr Vijay Mallya, told Business Line on Wednesday that the launch of the low-cost airline was being pushed back by a few months. The UB group is promoting Kingfisher Airlines.

"We have made a slight change in the business plan. Originally, we planned to lease four Airbus A-320 aircraft from GE Capital Aviation Services (GECAS) to start operations from January 15 next year. But now we will get all new aircraft and start in April next year. I felt that the trade-off of three months was well worth it," Mr Mallya said.

The airline now plans to get four aircraft on lease from Debis Finance. The first aircraft should arrive in April next year after which a leased aircraft will arrive every month till July.

In addition, the airline plans to buy four new Airbus A-320 aircraft between August and November next year apart from inducting eight more Airbus aircraft during 2006 so as to have a fleet of at least 16 aircraft. Kingfisher has signed for taking 14 brand new aircraft on an optional basis also, Mr Mallya said.

All aircraft in the Kingfisher fleet will seat 180 passengers in a one-class configuration. The fares will be lower than economy-class travel on full service airlines but slightly more than the low-cost competition.

Meanwhile, the airline is to double its paid-up capital from the existing Rs 30 crore to Rs 60 crore by November this year and to Rs 100 crore by December this year.

The airline is currently awaiting security clearance from the Home Ministry so as to be eligible for being issued a scheduled operators' permit. The issuance of the slicence will facilitate the airline starting regular services.

At present, there is only one low-cost airline - Air Deccan - that is operating in the country. However, several other players, including the Wadia Group, have shown interest in entering the domestic low-cost airline market.