The Hindu Business Line : Kingfisher plans to buy 50 Airbus aircraft

New Delhi June 20 Kingfisher Airlines plans to purchase 50 Airbus aircraft including 15 A-350-800 extrawidebody (XWB) and ten Airbus A-330aircraft. The book value of the deal is estimated at $7 billion.

Kingfisher Airlines and Airbus signed a memorandum of understanding (MoU) for the purchase at the ongoing Paris Air show on Wednesday. The airline also plans to acquire five Airbus A340-500 and 20 aircraft of the Airbus A-320 family that includes the Airbus A-318, A-319 and A-321.

"The airline strategy is to open new long haul routes and expand existing one. With the Airbus A-340-500 and the A-350 XWB, we will be able to offer direct routes between India and the US. Similarly, the A-330 would allow us to expand services to Europe and the A-320 would help us meet demand in our home region," the airline Chairman, Mr Vijay Mallya, said.

At the moment, Kingfisher Airline is not permitted to operate overseas as it does not meet the laid-down criterion: an airline should have completed five years of operations in the domestic skies before being allowed to operate abroad. Kingfisher Airline has been operating for the past two years.

While Kingfisher would receive the first of the 50 aircraft in March next year, it would have to wait till 2014 to receive the first A-350. The aircraft can fly 270 passengers up to 15, 400 km non-stop that would allow the airline to fly non-stop between Mumbai and San Francisco.

At present, Kingfisher has a fleet of 23 aircraft including 12 Airbus A-320, three A-319 and eight ATR 72 aircraft. The airline has also placed orders for another 15 aircraft including 5 Airbus A-380 and five A-340-500 aircraft.

The airlines fleet strength would go up further as it recently acquired a 26 per cent stake in low cost airline, Air Deccan, that has a fleet of 41 aircraft.