Kingfisher seeks price cut in next order as A380 compensation

Kingfisher Airlines is looking at price cuts for future aircraft purchases from European plane maker Airbus Industrie as compensation for the delay in delivery of its largest commercial plane A380. The airline, promoted by India's largest distiller UB Group, intends to place an order with Airbus for a long-range aircraft 'A345' ahead of foraying into international routes. "We will be acquiring more aircraft...Perhaps the A345's. We won't be going for just a compensation cheque from Airbus, but will negotiate for some price adjustments," a source said. The company would negotiate with Airbus for a concession in rates, which would effectively compensate for the delays in A380 deliveries, the source added.

Kingfisher last year became the only Indian carrier to have placed an order for the Super Jumbo A380. Delivery of the plane has been delayed by at least 10 months due to developmental snags. The aircraft was scheduled to join the Kingfisher fleet by 2010. Airline Chairman Vijay Mallya had last week said he was negotiating with the European aero major for compensations. "Definitely, there will be a compensation and we are negotiating with them," Mallya had said. About the acquisition of aircraft, the source said the purchase is aimed at international operations for which the airline would be eligible in a couple of years. The A345 was introduced as the world's longest-range commercial airliner. The aircraft can fly 313 passengers in a three-class cabin layout and can fly non-stop over 16,000 km.

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