UB Group's Kingfisher Airlines, which is scheduled to launch domestic operations from April next, would sign a deal with European aircraft manufacturer Airbus Industries for supply of 14 aircraft in Mumbai on December 18.
"The deal on the purchase of 14 A-320s has been finalised and will be signed on December 18 in Mumbai," UB Group chief Vijay Mallya said on the sidelines of the India Economic Summit in New Delhi.
Maintaining that the first two aircraft would be delivered in April next, he said the induction of a total of 18 aircraft, including four on lease, would be financed through external commercial borrowings. All the aircraft would be inducted by December 2005.
Replying to questions on the airline's financial position, Mallya said it would have a total paid-up capital of Rs 120 crore, which would be 'fully funded by the UB Holdings.' Observing that the UB Group companies had issued several international public offers (IPOs) earlier, he said the airline could consider an IPO at a later stage, but refused to elaborate saying it was 'premature' at this stage.
Mallya, a Rajya Sabha MP, said the Kingfisher Airlines would offer 2,000 seats when it is launched in April and raise its seat capacity to about 8,000 by the end of the year.
He said the private carrier had already received the 'no objection certificate' from the civil aviation ministry to start domestic operations and identified the sectors to operate on. The private sector carrier was also looking at serving international sectors in the SAARC region soon.
Besides UB Group, the civil aviation ministry has so far permitted some other airlines, including Go Air and Royal Airlines, to launch domestic operations.
