Kingfisher, P&W ink $300 million deal at Washington ceremony Tuesday November 21, 2006
Kingfisher Airlines and Pratt & Whitney signed a $300 million agreement at a Washington ceremony yesterday covering 10 PW4000-100 engines to power the carrier's five ordered A330s as well as one spare engine, 10 options and an exclusive overhaul and repair program.
The deal, first announced at Farnborough, will be worth $500 million if all options are exercised. The US Dept. of Commerce hosted the signing to highlight the growing trade relationship between the US and India and several dignitaries, including FAA Administrator Marion Blakey, were on hand.
"I bought the Airbus aircraft but as a result of US engines, the European aircraft is now more than 50% American," Kingfisher Chairman and CEO Vijay Mallya said, noting that a "very detailed analysis" led the 18-month old airline to choose the P&W powerplants.
He emphasized the importance of the US to Kingfisher's long-term plans. "I have been witnessing the huge growth in Indo-US trade and it's one reason why I've said since our launch, 'Let's forget the rest of the world and connect India to the US nonstop.'" Kingfisher does not operate US flights but has said it intends to in the future.
P&W President Steve Finger said the "strength" of his company's relationship with Kingfisher "is apparent and it's not just for this order."
The carrier will operate 160 daily flights with a fleet of 23 aircraft to 21 destinations at the height of its upcoming winter schedule. It entered into an interline agreement with Delta Air Lines last week under which passengers on DL's recently launched New York JFK-Mumbai flights will be able to connect to domestic Kingfisher flights.