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.

Passengers might fly supersonic very soon

Supersonic passenger travel was grounded in 2003 when British Airways and Air France cancelled their transatlantic Concorde service because of falling revenues and rising maintenance costs. The Aerion Supersonic Business Jet (SBJ) promises to help travelers break the sound barrier again. Named after a fleet-of-foot horse in Greek mythology, the Aerion SBJ will be able to carry a dozen passengers at speeds of up to Mach 1.5 for more than 4,000 miles. It is currently undergoing proof-of-concept aerodynamic testing of critical components in NASA wind tunnels and under the belly of a NASA F-15 supersonic jet. This Aerion SBJ will make it possible to fly from Paris to New York in four hours and 14 minutes, saving three hours off the trip compared to conventional jets.
And even in the United States, where supersonic flight is banned because of Federal Aviation Administration (FAA) sonic boom restrictions, the SBJ will be able to fly at a high subsonic speed of Mach 0.98 because of its unique, patented wing design, reducing coast-to-coast travel by 41 minutes vs. conventional aircraft.
Design breakthrough
The Aerion SBJ's wing represents a breakthrough in supersonic design and is the key to why the SBJ will be able to avoid the fate of the Concorde. Drag - the resistance caused by air as an airplane flies though it - is the enemy of speed and the enemy of economical operation. The Aerion SBJ's magic sauce is the use of supersonic natural laminar flow (SNLF) technology in the design of the wing. SNLF reduces drag.
Aerion's design completes a virtuous circle - it satisfies environmental regulations while providing economical operation and high performance.  Fastest aircraft are in museums
The passenger jet has been in the performance doldrums for nearly half a century. The first Boeing passenger jet, the four-engine B-707 introduced in the late '50s had a design speed of Mach 0.83. Today's state-of-the art commercial passenger jets such as the Boeing 787 Dreamliner and the Airbus 380 and business jets such the Gulfstream are basically still in the same Mach range because of their wing design, Aerion wants to change that.

The company hopes to have its new generation aircraft certified by the FAA and in the air by 2015. In spite of the worldwide recession that has toiled the entire aviation industry, Aerion has received 50 deposits of $250,000 for the $80 million for SBJ. The company is actively discussing development of the aircraft with a number of potential OEM (original equipment manufacturer) partners and hopes to have a deal in place by the end of the year. Aerion also sees a supersonic future that involves larger commercial passenger jets.

Few flights resume services in Europe

3 flights bound to New York, Dubai and Shanghai left Amsterdam on Monday night with at least 800 passengers. The EU Transport Commissioner is confident that some more flights might resume services on Tuesday. The Volcanic ash cloud over the Europe has crippled all major airlines and has stranded 1000's of passengers in different parts of the world. British Airways and Lufthansa had carried out test flight's and see no problems in resuming services. The British Airways sent a B747 for its test flight, on board the test flight was their CEO.
The bad news is that the volcano eruption in Iceland has strengthen and is moving East towards UK. IATA sees losses worse than post 9/11 because of this airspace closure in Europe