Cash-strapped Kingfisher Airlines is reportedly planning to downsize its fleet from the existing 64 planes as it going through difficult times. The company runs a mix of Airbus A320, Airbus A330 and ATR type planes and 90 percent of them are on lease. The lease terms of about 20 Airbus A320 planes are due for renewal in the next three-four months, says report.
The company is seeking 15-30% discount in lease rentals and has also asked the lessors to release security deposits amounting to $200 mn
Kingfisher Airlines, which had accumulated debt of over Rs 7,200 crore, saw its losses more than double to Rs 469 crore in the quarter ended September this year. The airline had posted a loss of Rs 231 crore during the corresponding period in the previous year. In 2010-11, the airline incurred a loss of Rs 1,027 crore.
