The Hindu Business Line : Air Deccan to buy 2 Airbus A-320 aircraft

THE European aircraft manufacturer, Airbus Industrie, on Wednesday made its maiden foray into the private domestic airline market with Air Deccan announcing that it will acquire two new Airbus A-320 aircraft from it.

In a statement, Airbus said that Air Deccan has also taken options on two more aircraft, apart from leasing five Airbus A-320 aircraft from Singapore Aircraft Leasing Enterprise (SALE).

The delivery of the aircraft is expected to begin in July this year, while delivery of the two new aircraft from Airbus is expected in September next year.

The two aircraft, which Air Deccan is to acquire in September 2005, are to be purchased instead of being leased, sources said.

Sources indicated that the airline is likely to start operating the Airbus aircraft on trunk routes from July itself.

The aircraft being acquired by the airline are less than five years old.

"The aircraft are likely to arrive in India some time before July and should be operational in July itself," sources said. The airline plans to use the 180-seater, all economy-class aircraft to expand services to major Indian cities from its Bangalore base. Sources indicated that the fares that the airlines will charge for trunk routes would be much lower than the existing rates being charged.

Commenting on the latest move of Air Deccan, the Airbus Vice-President, Dr Kiran Rao, said that the Airbus A-320 aircraft is the reference aircraft for low-cost and full service airline. "The aircraft will help provide affordable travel to the growing number of Indian middle class people," Dr Rao said.

Echoing similar sentiments, the Air Deccan Managing Director, Captain G.R Gopinath, said that with the airlines' low-cost approach, the Airbus aircraft was the winner in "our evaluation."