BUSINESS

Kingfisher, GoAir to place $2 bn orders

By P R Sanjai in Mumbai
July 17, 2006 09:48 IST
Top brasses of domestic airlines are set to make a splash in the outskirts of London. They are off to the city for participating in the 45th Farnborough International Airshow, starting tomorrow.

Kingfisher Airlines chairman and managing director Vijay Mallya and GoAir managing director Jeh Wadia are expected to announce major acquisition plans in the show. The orders are estimated to be over $2 billion.

Domestic airlines – Jet Airways, Kingfisher Airlines and Paramount Airways – had grabbed the spotlight at the Paris Air Show, making commitments to buy aircraft worth more than $7 billion from Boeing, Airbus and the Brazilian aircraft maker Embraer.

"Kingfisher chief is likely to sign a major agreement with US-based aircraft engine manufacturer, Pratt & Whitney, for supplying engines for its five Airbus A-330s," a highly placed source said.

Pratt & Whitney is set to make the announcement with much fanfare. Mallya is also likely to sign an agreement to acquire simulators from a UK-based company, the source added. However, the size of the deal is not known. 

A senior Kingfisher executive declined to comment. Significantly, European aircraft manufacturer Airbus Industrie has selected Kingfisher's A320 aircraft to display in its exhibition stall.

Meanwhile, GoAir, the Wadia group-promoted low-fare carrier, is expected to place an order for 20 Airbus aircraft. "This is part of its fleet expansion programme. GoAir had placed an order worth $1.2 billion with Airbus to acquire 20 Airbus A320 aircraft in last Asian Aero Space Conference held in Singapore in February," industry sources said.

GoAir executives declined to comment, adding "we are exploring aircraft acquisition opportunities".

"Apart from existing players, new entrants into the Indian aviation scene are also expected place orders for aircraft and other related infrastructure," an industry source said.

For Jet Airways, Chairman Naresh Goyal would be visiting Farnborough International Airshow, while Air Sahara would be represented by President Alok Sharma in the show. 

A special team from Air Deccan, Paramount Airways and SpiceJet has already left for the show. As Air Deccan has almost signed major agreements with suppliers, the airline may not place orders any further, a company executive said.

P R Sanjai in Mumbai
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