Airbus not to insist on Kingfisher taking aircraft delivery

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In temporary relief to Kingfisher Airlines, Airbus has said it will not insist that the cash- strapped carrier take the delivery of the aircraft it had ordered till its financial health improves.

Kiran Rao, executive vice president (sales and marketing, customer affairs) of Airbus, said they have not 'suspended' Kingfisher orders but 'asked' the airlines not to take deliveries.

According to Airbus's latest information on orders and deliveries, Kingfisher Airlines has placed order for a total of 62 aircraft. Of this only 13 are delivered and another 38 are under process of delivery.

The aircraft maker has received order for 55 aircraft from Kingfisher Red and only 12 airplanes were delivered.

"Suspended is too stronger word. That means we take some drastic action. For me it is just a dialogue we constantly have and the aircraft deliveries are delayed until the airlines is in correct financial health," Rao told on phone.

Liquor Barron Vijay Mallya-owned airlines is struggling to sustain its operations with debts of around Rs 7,000 crore.

It had to cut down its scheduled flights drastically due to paucity of funds for day-to-day operation.

"We are not asking them to take deliveries now. We push the aircraft delivery dates back. There was a request from the airlines (Kingfisher) to defer the delivery schedule," he added.

"Kingfisher has been a very good customer for Airbus. We continue to help them and support them. We know they have financial difficulties at the moment. We continue to help them. We give them the support they need," Rao said.

He said, however, the beleaguered airlines has to find its own way to come out of the financial mess.

"Obviously they have to find their own ways and means of getting out of difficulties they have. Whatever support we can give, we are giving it," Rao opined.

He said Kingfisher has not given Airbus new delivery schedule.

"They have not given us any time frame for new delivery schedules. It is not necessary. We don't need that level of certainty. As long as we know couple of years before it is fine," the Airbus executive said.

Replying to a query, Rao said Kingfisher story will not have any implications on Indian aviation industry as it is growing rapidly.

He, however, said high ATF and operational costs in India will have some impact on the overall industry.