Kingfisher extends fleet, adds 2 Airbus aircrafts

Mumbai, November 1, 2006 - Kingfisher Airlines Limited, India's first Full Service-True Value carrier and Pegasus Aviation Finance Company, the world's largest privately-held independent commercial aircraft lessor, recently announced the closing of a sale and lease back transaction for two brand new Airbus A-321 aircraft to be delivered to Kingfisher Airlines and to India where Kingfisher Airlines will be the first operator. This complements Kingfisher Airlines' existing fleet of 10 Airbus A-320s and 3 Airbus A-319s. The Airbus A-321 will be powered by IAE V-2500 engines and will be in a two class configuration consisting of 32 Kingfisher First seats and 119 Kingfisher Class seats. Pegasus Aviation Finance Company already leases one Airbus A-320 aircraft to Kingfisher Airlines.

Kingfisher Airlines brought home its second A321 aircraft on Tuesday. Both the A321 aircraft will be put into operations from November 05 2006. Kingfisher Airlines is the first airline to operate the biggest narrow body aircraft on the domestic circuit.

Under the terms of the transaction, Pegasus will take ownership of the two A-321 aircraft upon delivery from Airbus and Kingfisher Airlines will concurrently lease them from Pegasus.

Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines Limited said: "We are delighted to have the opportunity of expanding our relationship with Pegasus who have been excellent business partners. Kingfisher will be the first airline to introduce the Airbus A-321 aircraft in India. Given our growth and market share that we have achieved, I look forward to doing more business with fine partners such as Pegasus".

Kingfisher Airlines commenced commercial operations on May 9, 2005. All aircraft inducted by Kingfisher Airlines are brand new delivered directly from the factory. In a short span of 18 months, Kingfisher has been voted India's favourite Airline apart from receiving 3 international awards. Kingfisher currently is India's fourth largest Airline with a national market share of 9.4%.

Pegasus Aviation Finance Company based in San Francisco is world's largest privately held independent commercial aircraft lessor with an owned and managed fleet of over 250 Airbus and Boeing aircraft. Pegasus has been the world's fast growing aircraft lessor over the past 2 years and has been working in partnership with Oaktree Capital Management.

About Kingfisher Airlines

Kingfisher Airlines is India's first and only private airline to receive the prestigious, 'Best New Airline of the Year' award in the Asia-Pacific and Middle East region from Centre for Asia Pacific Aviation (CAPA). Kingfisher Airlines has also been voted as the 3rd Most Successful Brand Launch of the Year 2005, in the annual Brand Derby Survey conducted by India's leading business daily-Business Standard. In another Survey conducted by agencyfaqs.com and Brand Reporter, Kingfisher was voted as the 7th Buzziest Brand of 2005 amongst 2000 leading national and international brands. More recently, Kingfisher Airlines has bagged the "Service Excellence for a New Airline" award from Skytrax, a UK based specialist global air transport advisor.

Another addition to the list of laurels is the "Best New Domestic Airline for Excellent Services and Cuisine" award from Pacific Area Travel Writers Association (PATWA), the biggest travel writers' organization, across the globe, that conducts independent annual surveys across various industries related with Travel and Tourism in order to select the best in each category. In a survey conducted by IMB for Times of India, 46% of the participants voted Kingfisher Airlines 'The Best Airline" and "India's Favourite Carrier". Lastly Kingfisher Airlines won the "Brand Leadership Award" in the service and hospitality segment against several acclaimed hotels, leading banks and other airlines. Kingfisher Airlines commenced operations on May 9, 2005 with a brand new fleet of aircraft.

Kingfisher Airlines offers Full Service at True Value and promises an unparalleled experience to the Indian air traveler. On offer are extra-wide seats and spacious leg room, delicious gourmet meals, international-class cabin crew and a whole host of comforts and delights. Kingfisher Airlines also facilitates doorstep delivery of tickets on guest request. Kingfisher Airlines has further raised the bar by introducing the Indian business traveler to a premium product- Kingfisher First, the finest experience in the Indian skies. For more information on Kingfisher Airlines log on to www.flykingfisher.com . Fly the Good Times with Kingfisher Airlines.