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Wednesday, 18 June 2014

Airbus’s $6.8 Billion Kingfisher Order Hinges on Takeover

Airbus Group NV (AIR) said it’ll keep an 82-plane order from defunct Kingfisher Airlines Ltd. (KAIR) on its books while there’s still a chance that the Indian carrier might find a buyer which would require new aircraft.

The order concerns 67 A320 narrow-body jetliners and 15 twin-aisle A330s with a list price of $6.8 billion.

“If Kingfisher finds a new buyer for the airline that buyer would need single-aisle planes, so for that reason we’ll keep them until the airline is completely shut down,” Kiran Rao, Airbus’s executive vice president of sales and marketing, said in a briefing at the company’s base in Toulouse, France.


Kingfisher had debt of 91.4 billion rupees ($1.5 billion) as of Dec. 31, according to data compiled by Bloomberg. Owned by liquor baron Vijay Mallya, the Bangalore-based carrier ceased operations in 2012 and lost its flying permit after defaulting on payments to lenders, staff, airports and lessors.
Read news in full 13/06/14 Anurag Kotoky and Andrea Rothman/Bloomberg
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