Kingfisher, Air Deccan to revisit fleet purchase plans: Vijay Mallya

Vancouver: Air Deccan and Kingfisher Airlines are now looking at rationalising their fleet and considering changes in the total fleet order of 90 aircraft, according to UB Group chairman, Vijay Mallya.

"We are considering swapping or switching the orders" Mallya said on the sidelines of the annual general meeting of the International Air Transport Association (IATA). He said both Kingfisher and Air Deccan would "revisit their fleet plans" in coordination with each other to rationalise the fleet structure.

Both airlines have orders for about 90 aircraft currently placed with European aircraft major, Airbus Industrie.

Kingfisher's orders include five of the world's largest commercial aircraft - A380, the first of which is slated for delivery by 2011. It has also ordered A340-500s, A330s and A350s.

"There will be another widebody order. I am looking for aeroplanes that can go non-stop from India to the East Coast of the United States. We already have aircraft on order [Airbus A340-500s] that can make it to the West Coast, so this is the next requirement," said Mallya.

This would indicate that the A340-600 is the aircraft most likely to be placed on order and Mallya is expected to make an announcement at the Paris air show this month.

Talking about his plans to go international with Kingfisher, he said that he was "very optimistic" that the Indian government would give approval to operate international services soon. While Kingfisher may not be able to operate on international routes until 2010 under existing rules, Air Deccan would be eligible from the second half of next year. The low cost carrier began operations in 2003, and breaks the five-year ceiling at this time.

Mallya also said that he expects the UB Group to secure majority ownership of Air  Deccan through a public offer that he will make soon. Mallya controlled UB Group's acquisition of 26% of Air Deccan, through the purchase of new shares, has already made it the biggest single shareholder of Air Deccan.

Mallya also said that Air Deccan, and his own Kingfisher, will remain separate for at least the "near future", but he did not rule out a full merger at some point.