| New purchase to cost $7.3 Billion by Kingfisher. |
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 Kingfisher hopefully tried sigining MoU with Airbus to buy up to 50 wide-bodied, long range aircraft at an estimated $7.3 billion at list prices at ongoing Paris air show.An Airbus statement quoting Kingfisher CEO vijay Mallya made the baron's intentions clear:"Our strategy is to open new long haul routes and expand existing ones. With the A 340-500 and then the A 350 XWB we will be able to offer direct routes between India and the United states. The A 330 will allow us to expand services to Europe and the A 320s will help us to meet demand in our home region." The agreement is for A 350-800 XWBs in addition to the five converted from thier original order for the A 350, 10 A 330-200s, five A 340-500s and 20 A 320 family aircraft. After this MoU, Kingfisher Airlines and its partner airline Air Deccan can now have a commitment for a total of 176 Airbus aircraft covering the single aisle, widebody including the A 380 and the Airbus corporate jet. What's exciting the management most is the low sales tax on ATF these planes would enjoy. Big aircraft are charged a 26 to 28% sales tax on ATF and for those weighing less than 40 tonnes the tax is just 3%. These planes will be deployed on routes like Delhi-Khajuraho/Vadodara and Mumbai-Bhuj.
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