The Hindu Business Line : Kingfisher unveils route deployment plan for ATRs

The Chairman and Managing Director of Kingfisher Airlines, Mr Vijay Mallya, told newspersons after taking delivery of the first of the 35 ATRs here that this year, six ATRs will be delivered. In 2007, another eight will be delivered.

The airline has ordered for 35 ATR72-500s in a deal valued at $620 million.

Orders for the first 20 ATRs were placed during the Dubai Air Show in 2005. The rest of the orders were placed in February.

Unveiling the route deployment plan, Mr Mallya said the first two ATRs will connect Bangalore-Hyderabad-Mangalore and Chennai, with Bangalore being the hub for South India. In the second phase, Guwahati will be the hub for East India, while Jaipur will be the hub for North India for ATRs. "Our objective is to monopolise the southern sector," he said.

"We are not buying ATRs to conform to route disbursal guidelines. We find that there is a huge business opportunity to connect cities and towns which are not being serviced now," Mr Mallya said. He said the pricing of the fares will be based on the ATR operating cost.

Unlike A320s where each seat has a TV screen, each of these ATRs will have a common drop-down screen, a first in the industry. The ATRs have been customised for the airline and will have 66 seats even though it can accommodate 72 seats.

Majority stake with UB

Kingfisher Airlines will not divest more than 49 per cent stake in case it ropes in a private investor to part-fund the airline's expansion plans.

The airline plans to raise over $200 million in the next six months to part-fund its expansion plans. Mr Mallya said that the airline will continue to remain a subsidiary of the UB Group. "Hence we will continue to retain over 51 per cent of the stake at any given point of time."

He said the airline will buy stimulators for ATRs as well as for Airbus A320s. It also plans to set up a Kingfisher Airlines University to train pilots, and is looking at its brewery site in Thane for this purpose. Initially, it will look at supporting a pilots' school to train pilots.