Business Daily from THE HINDU group of publications
Friday, Dec 21, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Friday, Dec 21, 2007 ePaper | Mobile/PDA Version |
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Airlines Logistics - Outlook UB may cancel excess aircraft orders
K Giriprakash Bangalore, Dec 20 The UB Group is considering a move to cancel excess aircraft orders and return production slots to Airbus Industrie which could yield the company as much as $5 million for each aircraft. A top official with the UB Group told Business Line that after identifying excess capacity, both its airlines, Kingfisher Airlines as well as Deccan Aviation, plan to either lease out aircraft to other airlines or defer their induction into the fleet or cancel the orders in consultation with Airbus. On Wednesday, the boards of Kingfisher Airlines as well as Deccan Aviation are learnt to have decided to lease two of their Airbus aircraft to another airline. In case, both the airlines decide to cancel any of the orders, Airbus Industrie which is currently not able to meet the aircraft demand, will sell those aircraft to other airlines after paying about $5 million for each of these airplanes to the UB Group. Deccan has 23 Airbus aircraft in its fleet with 30 more in the pipeline while Kingfisher Airlines has 24 Airbus in its fleet while it is yet to receive 26 more aircraft. As earlier reported, both the boards decided to merge Kingfisher with Deccan Aviation. The merged entity will be renamed Kingfisher Airlines from the next financial year while Deccan would continue to operate as a low-cost airline. The UB Group Chairman, Mr Vijay Mallya, will be the Chairman of the merged entity while the Deccan Aviation Chairman, Capt G.R. Gopinath, will be the Vice-Chairman. Deccan puts funding on hold till route rationalisation with Kingfisher Air Deccan expects to break even before 2008-end Kingfisher Airlines, Deccan decide to merge More Stories on : Airlines | Outlook | Mergers & Acquisitions
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