Kingfisher-Deccan raises Rs1,000 crore in funding, defers deliveries

28 Aug 2008

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Mumbai: The Deccan Aviation-Kingfisher Airline merged entity has raised about Rs1,000 crore ($229 million) in funding from ICICI Bank Ltd, according to UB Group officials. The debt will be used to make advance payments for aircrafts as well as for operating expenses.

The debt has been raised in two tranches, with half the amount (Rs500 crore) being sanctioned by the bank now, while an earlier tranche was issued in April.

UB Group had earlier acquired Deccan Aviation and now holds a controlling stake in the airline.

Officials also confirmed that the airline had deferred deliveries of some aircraft in a move to scale back capacity and rein in costs. The Bangalore-based carrier has delayed deliveries of 32 Airbus A320s to 2010-12, from the scheduled FY09.

It will receive16 A320s till 2010 and the rest thereafter, a Kingfisher spokesman said. The airline will also convert five of its ten long-haul A340 orders to the smaller A330s, he added.

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