 Aircraft manufacturer ATR has cancelled Kingfisher Airlines' order for 38 ATR-72 turboprop aircraft as the carrier failed to make certain pre-delivery payments. Kingfisher, which is facing an acute cash crunch and is seeking urgent cash infusion, has a fleet of 64 aircraft including 26 ATRs. However, nearly 20 of them have been grounded for want of spares.
According to ATR spokesperson David Vargas, an order for 65 aircraft was placed in 2005-06. Air Deccan (prior to its takeover) had ordered 35 and the rest were ordered by Kingfisher. Twenty seven aircraft have been delivered so far.
"We didn't think Kingfisher's situation today was such that they'd be able to take additional aircraft in a short time," Filippo Bagnato, Chief Executive Officer, ATR said in Paris recently. "There were issues with the continuity of pre-delivery payments,'' he added. Kingfisher's spokespersons refused comment on the issue, according to a report by Business Standard.
ATR has been negotiating aircraft deliveries with Kingfisher for about two years, according to the aircraft manufacturer. ATR is a joint venture of European Aeronautic, Defence & Space Co. and Finmeccanica SpA (FNC) of Italy.
The carrier also has significant outstanding orders with Airbus, itself a unit of EADS. As of December 31, Kingfisher had orders pending for five A380 superjumbos, five A350 long-range wide bodies and 15 A330s, according to Airbus backlog numbers on its website. At list prices, the aircraft would be worth about USD 6 billion (about Rs 30,000 crore).
In an investor presentation a few months ago, Kingfisher said it would be doubling its fleet to 137 planes by 2015-16 by inducting Airbus A320s, A330s and ATR planes. In 2011-12 it was expected to add five Airbus A320s but that plan has now been shelved. In fact, the airline is considering downsizing fleet by a third in the next few months. It cancelled over 50 flights in its winter schedule and is expected to trim operations further.
|
