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By Dipankar De Sarkar, Farnborough,
July 15, 2008 (IANS)
Kingfisher
Airlines, one of India's largest domestic carriers,
will launch its international service with daily
flights to Europe and Southeast Asia by Sep 3
and the US soon after, airline chairman Vijay
Mallya said. Non-stop flights from Bangalore and
Mumbai to London, and from Mumbai to Hong Kong
and Singapore are to begin August 31- September
3 2008.
The India-to-London flights
will reach the British capital after lunch around
2.30 p.m. GMT, and the return flights will be
overnight journeys beginning around 10 p.m. GMT.
A unique non-stop flight
from Bangalore to San Francisco is planned for
September or October, along with a flight to New
York, either non-stop or one-stop. The Bangalore-San
Francisco non-stop flight, according to me, is
a no-brainer because it connects the two silicons
- the Silicon Plateau and the Silicon Valley,
Mallya told reporters aboard an Airbus A330-200
aircraft recently acquired by Kingfisher Airlines
and displayed at the Farnborough airshow that
began Monday.
The biggest and the
best software companies from the San Francisco
Bay area have large operations in Bangalore and
there is a huge amount of traffic. That's one
sector in the (aviation) industry that hasn't
been affected by rising oil prices or the slowing
economy, Mallya added.
Kingfisher has convenient
landing and take-off slots for all the sectors.
The success of Kingfisher's international service
is pinned heavily on demand for foreign travel
among Indians sustaining through an economic downturn
and rising prices. We believe that there
are a large number of Indians who pay for quality
and service," Mallya said.
We recently have been
forced to raise prices due to the rises in the
price of fuel. And we have surprisingly not seen
any reduction in our load-factor, which reinforces
our belief that when people pay more they demand
higher standards of quality, which Kingfisher
Airlines is able to deliver, Mallya said.
Mallya said the Kingfisher
international flights have been designed in a
two-class configuration, with the front cabin
priced slightly higher than normal business class,
but offering a nearly full first class experience.
Although the seats will be
without partitions, which Mallya thought were
unnecessary in today's economic context,
there will a bar area, where customers can use
laptops and socialise. There will be an on-board
chef and business class seats will come with head-to-toe
massagers and Bose headphones.
Economy class passengers
will be served business class meals and have access
to web-chat and email services. We are putting
back the style into air travel which over the
years has disappeared in favour of better economics,
he added. I believe there are people who
will pay to fly in style. Kingfisher has never
sold cheap, will not sell cheap.
Kingfisher Airlines, part
of the UB Group, will press a fleet of 10 Airbus
aircraft - five each of the A330-200 and A340-500
- for its international routes, with plans to
acquire more planes in 2010.
Hopefully, the oil
prices will blow over if not next year, then the
year after, Mallya said. In the meantime,
Mallya admitted, Kingfisher Airlines was burning
money rather than generating it - not only
due to rising global oil prices but also because
of a 30% sales tax on aviation turbine fuel in
India, which he wants cut to 4%. But he said Kingfisher
was better placed than its domestic competitors
because of the financial stability provided by
the UB Group.
UB is one of India's
largest companies. We are clear market leaders
in some of the fast growing businesses in India
in their respective categories," Mallya stressed.
We have huge cash flows. That is not to
say we intend to unnecessarily dump cash in any
unprofitable business. But if it means seeing
Kingfisher through turbulent times, then we obviously
will, in the best interests of our shareholders."
Kingfisher is well
funded. It has optimised its operations and, therefore,
we aren't nearly as vulnerable as some of our
other airlines in India might be, Mallya
added.
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