Kingfisher defers Airbus A380 purchase by 2 years

India’s second largest private carrier Kingfisher has delayed its purchase of Airbus A380 aircrafts it had ordered earlier. Kingfisher airlines had ordered five A380s – Airbus postponed it to 2011. Now Kingfisher is the one looking to get a further deferment due to the overall slowdown in the aviation sector. That would mean the airline wants the Airbus A380s only in 2014.

Kingfisher was seeking a delay “because we want to go for a high take-off weight option” according to an unnamed airline spokesman in Mumbai. That would allow a nonstop flight from Mumbai to U.S. There was no clarification on the part whether the manufacturers have agreed to the terms. The deferment is bad news for Airbus, as many airlines worldwide are cancelling or postponing their aircraft orders.

The price for a A380 suerjumbo aircraft is $315 million.

With the economic meltdown getting worse, like many other carriers, Kingfisher has lost millions and now shares an agreement with their rivals Jet Airways on foreign destinations.

In the last four months, Kingfisher has suffered a loss of Rs 626.24 crore and brought down an initiation cost of Rs 174 crore for its international operations.

It has already deferred deliveries of other aircraft from Airbus such as the A320s and A340s.

Kingfisher has also sold three out five A340s to Nigeria’s Arik Air after starting its international flight from Bangalore to London on 3rd September 2008.

“Deferring delivery of A380 will further rationalize the capacity. This will also help Kingfisher Airlines to arrest losses,” said a Mumbai based aviation analyst. He added that cancellations are welcome at this point of time to incorporate the declining passenger traffic. Kingfisher has been complaining loudly that fare cuts by domestic airlines are costing it dearly, and in some cases, the airline has had to offer fares similar to those charged by India’s low-cost airlines.

Airbus, on its website, claims A380’s direct operating cost per seat is 15-20% lower than rival Boeing Co.’s B747-400. Airbus has so far secured orders for 198 A380s, of which 13 are already flying.

With the onset of fuel price escalation in early 2008 and subsequent global recession, the airlines had to drop their plans to launch international services to Gulf, U.S, Indian subcontinent and Southeast Asia.

Colombo and London Heathrow are the only foreign stations Kingfisher provide services to and mostly it will remain as a domestic operator at present.