The Hindu Business Line : Kingfisher Airlines gets in-principle nod from Ministry

THE domestic aviation sector may soon see a new low-cost entrant with the Government giving `in-principle' clearance to the UB Group-promoted Kingfisher Airlines to start operations.

A high-powered committee of the Ministry of Civil Aviation gave had given its `in-principle' approval to the UB Group's airline project, official sources told Business Line.

Kingfisher is likely to wing its way to the domestic skies in April next year. The Chairman of the UB Group, Mr Vijay Mallya, had told Business Line earlier that the airline had made a slight change in its original business plans.

Instead of leasing four Airbus A-320 aircraft from GE Capital Aviation Services (GECAS), Kingfisher, he said, would get all new aircraft and start operations in April next year. Its original plan was to start operations from January 15 next year.

Accordingly, Kingfisher now has 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 each month till July 2005.

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.