Airbus Not Delivering More Aircraft to Kingfisher

Thursday, 12th April 2012 at 12:16pm

Airbus has been considerate of the financial problems happening to Kingfisher Airlines as the company announced that it will not insist Kingfisher to take the delivery of its ordered aircraft until the financial health of the airline improves.

The executive vice president of Airbus' sales and marketing, customer affairs, Kiran Rao, shared that the company is not suspending the orders made by Kingfisher rather Airbus is asking the airlines to not yet take deliveries.

A total of 62 aircraft were ordered by Kingfisher Airlines, this according to the latest information on orders and deliveries from Airbus. Of the 62 aircraft, Airbus only delivered 13 as the other 38 are still under the process of delivery.

Kingfisher Red has also ordered 55 aircraft from Airbus were 12 airplanes have been delivered.

Rao is reported to have said, "Suspended is too stronger word. That means we take some drastic action. For me it is just a dialogue we constantly have and the aircraft deliveries are delayed until the airlines is in correct financial health."

Vijay Malya, the liquor and airline baron and owner of Kingfisher Airlines is said to be having problems in sustaining the airline's operations as Kingfisher owed around Rs 7,000 crore forcing a cut on the number of its scheduled flights because of the lack of funds needed for its day-to-day operations.

Rao added, "We are not asking them to take deliveries now. We push the aircraft delivery dates back. There was a request from the airlines (Kingfisher) to defer the delivery schedule."

"Kingfisher has been a very good customer for Airbus. We continue to help them and support them. We know they have financial difficulties at the moment. We continue to help them. We give them the support they need."

Although Airbus is sympathizing with Kingfisher, Rao believes that Kingfisher still needs to solve its financial problems and solve it on their own. Rao shared, "Obviously they have to find their own ways and means of getting out of difficulties they have today. Whatever support we can give, we are giving it."

At present, Kingfisher didn't give a new delivery schedule to Airbus. "They have not given us any time frame for new delivery schedules. It is not necessary. We don't need that level of certainty. As long as we know couple of years before it is fine," added Rao.

Rao thinks that the financial problems happening to Kingfisher Airlines will not affect the fast growing Indian aviation industry not like how India's high ATF and operational costs does.

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