The Hindu Business Line : Kingfisher plans to lease out A-340-500 aircraft

Mumbai/ New Delhi, Jan. 8 With Government permission to fly abroad not yet forthcoming, Kingfisher Airlines plans to lease the first Airbus A-340-500 aircraft being acquired by it to an airline till such time as it becomes eligible for international flights.

The airline is to receive the first of the five A-340-500 aircraft in March-April this year. The aircraft is capable of flying non-stop between Bangalore and San Francisco.

At the moment, Kingfisher does not meet the Government guidelines of completing five years of domestic operation to fly abroad. Kingfisher hopes to cross the five-year hurdle by completing the acquisition of Air Deccan by August this year so that it can fly abroad on Air Deccan rights. The Bangalore-based low cost airline completes five years of domestic operations on August 23, this year. The Deccan Board is to meet in Bangalore on January 22 to take the buy out by Kingfisher forward.

Confirming the development, Mr Hitesh Patel Executive Vice President, Kingfisher Airlines said that the airline plans to enter into a short-term lease for Airbus A-340-500 aircraft till Deccan becomes eligible for international operations.

“A final decision on the aircraft leased is expected within a month,” Mr Patel told Business Line. The decision is being viewed as better utilisation of an expensive asset as operating the aircraft on short haul domestic flights would have increased the wear and tear on the machine and probably not proved cost effective.

The buy out of Air Deccan is also likely to get a boost with the Deccan Board meeting in Bangalore on January 22 to take stock of the acquisition. Incidentally, this is not the first time such an arrangement is being worked out in India. A few years back Jet Airways had leased an aircraft from Air India which was not being utilised by the State-owned airline.