News: Kingfisher Air may set up venture abroad
(BL 08/04/2006) Bangalore - Kingfisher Airlines is considering a move to set up a new venture in the US or the UK to fly international routes even as it became the first to bid for all the five parking slots for superjumbo A380s in Mumbai and Delhi.
"We have applied for Airports' Authority of India's parking slots for A380s," the airline's Chairman, Vijay Mallya, told Business Line. The Airports Authority is in the process of building parking slots for A380s in Mumbai and Delhi.
Currently, Kingfisher Air is the only airline in India, which has placed orders for A380s. The ticket price for each of these aircraft, the largest passenger plane in the world, is around $280 million. The delivery of these aircraft, which can accommodate 800 passengers each, is not expected before 2010.
Mallya said if the Union Government does not allow his airline to fly on international routes soon, then it will consider setting up a venture in the US or UK. "If the Government does not give us permission soon, we will fly in the reverse direction," Mallya said. "It is hugely unfair on the part of the Government to bar newer airlines from flying international routes," Dr Mallya said. The airline has also ordered for five A350-800s, which are usually deployed for long haul operations, clearly indicating that the airline is readying itself to fly international routes sooner than later.
Low-cost model
He also ruled out any plans to follow the low-cost model. "These low-cost airlines are in fact low fare (airlines)," he said. He said LCCs (low cost carriers) do not have a future in India as long as there are no secondary airports in the country. He said unlike the US or the UK, India does not have secondary airports where landing charges are lesser. Even the fuel charges are the highest in the world, he said. "They have a lesser chance of succeeding in India," he said.
Good response
Dr Mallya said the newly introduced business class has met with a good response. "Our business class is fully booked even though we just had a soft launch," he said. The business class offers reclining seats and has several other features. Mallya said as the airline buys only new aircraft, it was cost-effective to customise them.
"We have applied for Airports' Authority of India's parking slots for A380s," the airline's Chairman, Vijay Mallya, told Business Line. The Airports Authority is in the process of building parking slots for A380s in Mumbai and Delhi.
Currently, Kingfisher Air is the only airline in India, which has placed orders for A380s. The ticket price for each of these aircraft, the largest passenger plane in the world, is around $280 million. The delivery of these aircraft, which can accommodate 800 passengers each, is not expected before 2010.
Mallya said if the Union Government does not allow his airline to fly on international routes soon, then it will consider setting up a venture in the US or UK. "If the Government does not give us permission soon, we will fly in the reverse direction," Mallya said. "It is hugely unfair on the part of the Government to bar newer airlines from flying international routes," Dr Mallya said. The airline has also ordered for five A350-800s, which are usually deployed for long haul operations, clearly indicating that the airline is readying itself to fly international routes sooner than later.
Low-cost model
He also ruled out any plans to follow the low-cost model. "These low-cost airlines are in fact low fare (airlines)," he said. He said LCCs (low cost carriers) do not have a future in India as long as there are no secondary airports in the country. He said unlike the US or the UK, India does not have secondary airports where landing charges are lesser. Even the fuel charges are the highest in the world, he said. "They have a lesser chance of succeeding in India," he said.
Good response
Dr Mallya said the newly introduced business class has met with a good response. "Our business class is fully booked even though we just had a soft launch," he said. The business class offers reclining seats and has several other features. Mallya said as the airline buys only new aircraft, it was cost-effective to customise them.
posted by InCar Group Press Room at 16:22
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