Lion Air Orders 27 Extra ATR72 Planes for Wings Air

Indonesia's Lion Air placed an order for 27 additional ATR72 turbo prop planes as the low-cost carrier extended a wave of orders at the Singapore Airshow. Lion Air chief executive Rusdi Kirana told on Thursday that the ATR72 aircraft would be used to extend the network of its regional subsidiary Wings Air, which serves some of Indonesia's remote islands.

The order is valued at USD$610 million at list prices. The latest order brings to 60 the total number of the turbo props ordered by Lion Air to date, of which 16 have already been delivered. ATR is jointly owned by Airbus parent EADS and Italy's Finmeccanica. The deal comes after Lion Air finalised the order of 230 Boeing aircraft and also snapped up two Hawker Beechcraft for use in its charter services. Lion Air's purchases have dominated Asia's largest aerospace event and reflect rapid growth in Indonesia's domestic aviation market, which has been adding traffic at the rate of 20 percent each year.

Azhul takes delivery of the first ATR72-600

Brazilian carrier Azul Linhas today took delivery of the first ATR 72-600 regional turboprop aircraft. Fast-growing carrier Azul has placed orders for a total of 30 ATR 72-600s, with options an additional 10 aircraft. Azul was founded in December 2008, and in less than three years has developed an extensive network of 40 destinations throughout Brazil. In addition to its ATR 72s, Azul operates a jet fleet of Embraer 190s and 195s. With the delivery of the aircraft today, Azul Linhas  becomes one of the first operators of the newest generation ATR aircraft. With the introduction of its new fleet of ATR 72-600s, Azul will continue to support its growing national jet network with shorter haul regional routes. With its current fleet of 8 ATR 72s, Azul serves more cities within the economically vibrant state of Sao Paulo from its Campinas base than any other carrier.

Brazil has become in recent years a booming market for ATR, whose aircraft are optimally suited for the expansion of domestic short-haul routes due to their low operating and maintenance costs, up to 45% less than its competitors. The environmental friendliness of the ATRs, which produce up to 50% less CO2 than other regional aircraft, are also among the reasons for their popularity in Brazil. Today there are 50 ATR aircraft operating in Brazil, a figure expected to more than double within the next three years.  David Neeleman, Founder and Chairman of the Board of Azul, declared: “We are delighted to introduce the new ATR -600 series in Brazil and to be among the very first operators of the newest generation turboprops in the world. In addition to offering our passengers the highest standards of comfort, we are committed to making flying more accessible to Brazilian customers in terms of both frequency and cost. This aircraft fits this mission perfectly."

Filippo Bagnato, Chief Executive Officer of ATR, declared: “With the new ATR 72-600s, the Brazilian regional passengers will have the opportunity of experiencing the new ‘Armonia cabin’, which features the most advanced technologies in terms of comfort, including larger overhead bins and thinner seats with more legroom. Brazil is a very dynamic market and we are convinced that the performance of the ATRs, coupled with the high levels of comfort proposed to passengers, will continue providing us expansion opportunities across the country and in the whole Latin America”.

Kingfisher Airlines optimistic about growth

India's Kingfisher Airlines is looking to lease both wide-body and narrow-body aircraft to meet an unanticipated surge in demand as the domestic economy recovers more quickly than expected, the company's chairman, Vijay Mallya, said on Monday. Mallya also told reporters on the sidelines of the International Air Transport Association's annual meeting in Singapore that the company had revived a plan to sell Global Depository Receipts, taking higher oil prices into calculation. Asked if Kingfisher's current capacity was enough to cater to the projected increase in demand, he said: "Not quite, that is why we are looking for leased capacity.

"Kingfisher at one time had several aircraft that were on order from Airbus for delivery in 2010 and 2011. During the 2008-2009 crisis, I actually postponed the delivery of those aircraft to 2012 and 2013," Mallya said. "So right now we are looking for capacity, but our own new deliveries will start in about 18 months." He said he was looking to lease both narrow-body and wide-body aircraft. "We have been experiencing for the last six months unprecedented load factors, which I have never seen in the last six years," Mallya said. "We are running at mid to high 80 percent on every flight, which is extremely healthy."

According to its website, Kingfisher has 66 aircraft, mostly Airbus jets and ATR turbo-prop variants. It has more than 125 planes on order. Loss-making Kingfisher, India's second-largest airline by market share, has restructured its debt by converting almost INR12 billion rupees (USD$268 million) of loans into equity. Its current debt stands at about INR60 billion rupees. Last month, it reported a net loss of INR10.27 billion rupees in the fiscal year ending March 31, versus a loss of INR16.47 billion rupees the year before. But it had positive EBITDA amounting to INR1.4 billion rupees, the company says. "We reported significantly improved numbers and EBITDA profit for the first time. This is a sign of things to come," Mallya said.

He said the company had also revived a proposal to sell GDRs of USD$250 million - USD$350 million, but gave few details. "We had an excellent roadshow for our GDR in January and early February this year and we presented a compelling business plan." He said the plan assumed crude oil at USD$90 per barrel. "The minute crude oil prices started going up to USD$120 plus per barrel, prospective investors asked us to rework our business plans, which we did."

The flamboyant Mallya, who controls the United Breweries Group, owns a Grand Prix motor racing team and a team in India's cricket league, said Kingfisher's growth should be enhanced as it joins the oneworld airline alliance, which also includes Cathay Pacific, British Airways and Qantas. "The opportunities to leverage this alliance are huge," he said, adding that Kingfisher would become a fully operational member by 2012. "We see this as being a contributor of about 5-6 percent of enhanced revenue to us."

He said Kingfisher was continuing to lobby the government to allow foreign airlines to take stakes in Indian carriers. "Airlines in India must raise capital and the opportunity to raise capital from foreign airlines must not be excluded and that's why we will continue to request the government of India to reconsider its foreign direct investment policy." Kingfisher flies to eight international destinations and to more than 50 towns and cities in India. Its fleet of turboprop aircraft will help it to respond to the pattern of wealth creation in India, Mallya added. "There is a lot of wealth in tier-2 and tier-3 cities that is being created," he said. "It is no longer a situation where wealth in India is restricted to the big metro cities, so it offers a huge amount of opportunity. "Kingfisher is well positioned because it has a large number of ATR aircraft which are ideal to service the emerging demand in tier-2 and tier-3 cities," he said.