Update: Kingfisher Airlines places $350 million order

21 November 2005

Mumbai: Kingfisher Airline has announced the acquisition of 30 A320 aircraft worth $2 billion at list prices. The deal was nnounced at the Dubai Airshow a day after Kingfisher placed an order for 20 ATR72-500 planes in a deal worth $350 million with an option for 15 more aircraft.

International Aero Engines (IAE) will supply the engines for the planes. In June, Kingfisher signed contracts for 15 Airbus aircraft, including five superjumbo A380s, in a $3 billion deal designed to capitalise on India''s fast-growing air traffic market.

Deliveries are expected to start next year and go up to 2012.

Kingfisher Airlines'' is likely fund the purchase from its earnings from UB''s brewery business, which produces half of the beer sold in India.

Speaking to reporters last week Mallya said, "We are announcing two major deals at the Dubai air show for the jets and turbo-propelled aircraft. This is part of our network expansion plan."

The 175-seater Airbus jets cost $60 million (€51 million), while the ATR planes cost around $15 million (€12.7 million).