Kingfisher Airlines eyes cargo airspace

BANGALORE: Kingfisher Airlines is eyeing the air cargo business. Kingfisher’s key competitor, Jet Airways has already announced plans to launch a cargo airline.

“It is an undoubtedly huge opportunity, though at this point of time we are looking at filling our underbelly(of the passenger airline),” said Vijay Mallya, chairman, UB Group. He added that a name has been has been identified— King Cargo — for the cargo business.

Queried about plans for an initial public offering, he said that the airline company had been adequately capitalised at Rs 372 crore. “An IPO is not a necessity and we would in go for an IPO only if we get full shareholder value. The movement in the market is not the thing that we are watching but it is the value,” he said.

Mr Mallya in one of his media interactions earlier this year had indicated that Kingfisher Airline would tap the markets for raising finance through an IPO.

Kingfisher Airlines is scheduled to receive 10 aircraft this December followed by six next year and another eight in ’08. He said that the A-380 production delays indicated by Airbus would not impact the delivery of these aircraft to Kingfisher Airlines.

“As per our requirement, these(A-380s) are due only in ’10. Only those who are scheduled to receive the A-380s in ’07/’08 could be impacted and not us. We expect to receive our wide-bodied aircraft in ’07,” Mr
Mallya added.

To a question on allowing Indian aircraft operators to fly overseas, he said that a review of the existing norms(which specify that only those which have been in operation for five years can fly on international routes) had been sought. “If whatever reason the review doesn’t work out we have our alternate plans which we plan to put into force,” he said.