Business Daily from THE HINDU group of publications Wednesday, Jun 06, 2007 ePaper |
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Airlines Corporate - Mergers & Acquisitions Kingfisher to rationalise Air Deccan fleet: Mallya Ashwini Phadnis
Vancouver June 5 Kingfisher Airline, which recently acquired a stake in Air Deccan, will soon begin rationalising the fleet of aircraft operated by the two airlines, the airline Chairman and Managing Director, Mr Vijay Mallya, has said.
Order book
The two airlines have together ordered more than 90 Airbus aircraft. Kingfisher has ordered 15 aircraft including five Airbus A-380 and five 340-500 aircraft. The airline is to receive the first of the aircraft early next year. Air Deccan has placed orders for several single aisle Airbus A-320 and ATR aircraft that it currently operates. "There has to be some rationalisation of the fleets. We will have to see if the market can take all the capacity that would be added by inducting these aircraft. We could look at switching or swapping the aircraft rather than cancelling the order. At the moment it is too early to say anything as the deal with Air Deccan has just been concluded," Mr Mallya said. Earlier this month, United Breweries Holding Ltd, acquired a 26 per cent stake in Air Deccan and is to make an open offer for acquiring another 20 per cent of the low-cost airline. United Breweries has also promoted Kingfisher Airlines
Airline summit
Speaking to the media on the sideline of the 63rd annual general meeting and World Air Transport Summit, Mr Mallya refused to speculate on what would be the ideal fleet size for the new airline. The three-day summit has been organised by the International Air Transport Association (IATA). Kingfisher Airlines, meanwhile, is to announce an order for more wide-body aircraft at the Paris Air show that opens later this month. "The aircraft will be used to operate flights from India to the east coast of the US, while the Airbus A-340-500 aircraft will be used to operate non-stop flights from India to the west coast of the US," Mr Mallya said. The airline has announced the intention to fly to the US despite not having received permission from the Government to operate the flight.
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