Kingfisher inks deal to acquire 50 Airbus aircraft

In the single largest order by a private Indian carrier, liquor baron Vijay Mallya's Kingfisher Airlines today signed a deal with Airbus Industrie to purchase 50 aircraft at an estimated $7.3 billion. The deal value is at list prices, which does not take into account discounts.

The agreement, signed at the ongoing Paris Airshow by Mallya and Airbus COO John Leahy today, is for the acquisition of 15 A350-800 XWBs (extended wide-bodied), ten A330-200s, five A340-500s and 20 aircraft from the A320 family, that is the A-318s, A-319s, A-320s and A-321s.

Kingfisher is so far the only Indian airline to have ordered the world's largest aircraft A-380 SAS. The five A-380s it has ordered are expected to be delivered in 2011-12.

With the 50 wide-bodied and single-aisle aircraft, Kingfisher plans to operate new long haul routes and expand the existing ones.

After signing the deal at the Le Bourget airport here, Mallya said: "With the A340-500 and then the A350 XWB, we will be able to offer direct routes,  for example, between India and the US.

"The A330 will allow us to expand services to Europe, and the A320s will help us meet demand in our home region."

Kingfisher is yet to be permitted by the government to operate globally as it has not completed the mandatory five years of domestic operations, though it satisfies the other condition for international operations of having a 20-aircraft fleet.

Both Kingfisher and its new low-cost partner, Air Deccan, now have a commitment for a total of 176 Airbus aircraft, covering single-aisle, wide-body including the A-380s and the Airbus corporate jet.