Kingfisher to add to fleet by Oct; sees FDI rule ease
Kingfisher Airlines, plans to add eight leased aircraft to its fleet by October this year to expand capacity in the wake of growing air traffic, the firm said in an investor presentation made earlier in January.
January 28, 2011 / 11:14 IST
Kingfisher Airlines, plans to add eight leased aircraft to its fleet by October this year to expand capacity in the wake of growing air traffic, the firm said in an investor presentation made earlier in January.
Of the eight aircraft, six will be narrow-body Airbus A320 models and two will be the wide body Airbus A330s, the presentation said.Kingfisher currently has a fleet of 66 aircraft, including 34 Airbus A320s.Kingfisher is second in market share in India along with IndiGo, according to government data, with identical market share of 18.6%. The Jet Group is the largest Indian domestic carrier with 25.4% market share.India's domestic passenger traffic grew 18.7% through January to December last year led by a burgeoning middle class in Asia's third largest economy.Rival airlines have lined up ambitious expansion plans. Earlier this month, budget carrier IndiGo placed the largest jet order in commercial aviation history at USD 15.6 billion to buy 180 planes from Europe's Airbus.State-run Air India also announced plans in January to lease 40 new planes from Canada's Bombardier and Airbus.Kingfisher, controlled by United Breweries Holdings, also expects the Indian government to open up the domestic market to foreign carriers."FDI (foreign direct investment) policy is expected to allow foreign airlines to take equity stake in domestic carriers in the near future," it said in the presentation.The Ministry of Civil Aviation has moved a proposal in 2009 to allow foreign airlines to acquire 25% equity in local airlines, it added. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
