Mukesh Ambani takes Mallya on board for maintaining ACJ

MUMBAI: Reliance group chairman Mukesh Ambani will draw on the luxury experience of the King of good times Vijay Mallya, to look after his latest acquisition, the Airbus Corporate Jet (ACJ). Reliance Aviation, the Mukesh Ambani group company, that looks after the group’s airline and helicopter fleet, has signed a operations and maintenance contract with Kingfisher Airlines to look after the Rs 250 crore machine, sources said.

The UB group chairman also owns a similar aircraft configured in luxury fittings. According to the agreement, Kingfisher Airlines will be responsible for the aircraft management — which essentially means supplying the Ambanis with pilots, crew, spares for the plane as well as line maintenance and handling of the aircraft.

The ACJ, is built on the Airbus A319 platform, which is part of the Airbus A320 family. Kingfisher Airlines operates about 25 such planes and has people and infrastructure at almost all the major airports to handle the plane. Reliance is already training some pilots to take over from Kingfisher. The ACJ, that can fly non-stop to Europe and to the US with one stop, is already being used by the Ambanis.

The plane seats about 22 (compared to a standard two class configuration of 150) and has state-of-the-art communication equipment to allow passengers to be connected throughout the journey. About 100 ACJs are in service with corporates and governments throughout the world.

Meanwhile, in a financing deal for the plane, the Reliance group has completed a sale and lease back transaction, to fund the plane. Unlike smaller business jets which can be cramped for longer intercontinental journeys, the ACJ, the largest business jet in the market today, allows corporate users to have distinct work and rest areas. Mr Mallya plans to charter the ACJ at about $4,500 to $5,000 per hour, when it is not being used by him or his friends. It is still not clear whether Mr Ambani will do the same.