Airlines Deals

U.K. stocks advanced for a fourth day, led by Rolls-Royce Group Plc and Royal Dutch Shell Plc after the companies reported earnings that beat analysts’ estimates.

Kingfisher Plc rose as the retailer said a measure of sales at the B&Q home-improvement chain fell the least in six quarters.

The FTSE 100 Index added 33.2, or 0.6 percent, to 5910.30 at 9:36 a.m. in London. The FTSE All-Share Index gained 15.13, or 0.5 percent, to 2994.23.

Ireland’s ISEQ Overall Index climbed 47.55, or 0.6 percent, to 7442.19.

Shares of Rolls-Royce advanced 17.25 pence, or 4.1 percent, to 438.75. The world’s second-largest aircraft-engine maker said first-half profit rose more than fivefold as the company provided more spare parts and repairs. Net income of 619 million pounds ($1.15 billion) exceeded the 181 million-pound median estimate of four analysts surveyed by Bloomberg News. Rolls-Royce said it will increase its dividend 10 percent.

Shell added 33 pence, or 1.8 percent, to 1,905. Europe’s second-largest energy producer said second-quarter profit adjusted for inventory changes and one-time items climbed to $6.5 billion, beating analysts’ estimates of $6.2 billion. The company said record oil prices offset production losses in Nigeria.

Kingfisher gained 7.25 pence, or 3.1 percent, to 243.75. Europe’s biggest home-improvement retailer said sales at B&Q stores open at least a year slipped 2.4 percent in the 11 weeks ended July 15, beating the median analyst estimate of a 4.4 percent drop in a Bloomberg survey.

The following stocks also rose or fell in London. Company symbols are in parentheses:

Bradford & Bingley Plc (BB/ LN) declined 16.25 pence, or 3.5 percent, to 446.5. The bank, which provides a fifth of loans to U.K. landlords, said first-half profit fell 48 percent because of a higher-than-expected charge for customer claims on investment products. Net income of 54.8 million pounds missed the 113 million-pound median estimate of 10 analysts surveyed by Bloomberg News.

EMI Group Plc (EMI LN) slid 7.75 pence, or 3 percent, to 254. The world’s third-largest music company abandoned plans to buy rival Warner Music Group following a European Union court decision that damped prospects for regulatory approval of a deal.

Legal & General Group Plc (LGEN LN) lost 1.25 pence, or 1 percent, to 126 after Britain’s fourth-biggest insurer said first-half profit dropped 30 percent on lower investment returns.

Metal Bulletin Plc (MTLB LN) jumped 20 pence, or 5.4 percent, to 391. Euromoney Institutional Investor Plc (ERM LN), a publisher of business magazines, raised its offer for Metal Bulletin to 220.9 million pounds after the conference organizer and publisher rejected an earlier bid.

Euromoney shares dropped 11.25 pence, or 2.9 percent to 383.5.

Psion Plc (PON LN) slumped 29.5 pence, or 19 percent, to 122. The provider of wireless services and equipment to businesses said gross profit margin in the first six months of the year were affected by “competitive pressures, the evolving mix of products and adverse exchange rates.'’ The company said operating profit before reorganization costs in the period will be about 1 million pounds.

Panmure Gordon cut its recommendation on the shares to “hold'’ from “buy.'’

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Kingfisher Airlines, India’s fastest growing airline and India’s first True-Value, Full-Service carrier today announced the launch of a new promotional offer aimed at delighting discerning guests who fly Kingfisher First- Kingfisher Airlines’ premium front cabin offering..

Under the offer, Kingfisher First guests can purchase a same day return ticket for Rs. 20,000, inclusive of taxes and surcharges. The offer is valid on all routes serviced by Kingfisher First. Tickets can be booked at any of Kingfisher Airlines’ conveniently located Ticketing Offices, through the Kingfisher Airlines Call centers or through your nearest Travel Agent. The offer is valid for ticketing and travel until September 30, 2006. The First Return offer is aimed at the top-end business traveler who completes his business trip during the same working day and is bound to be a sure hit with this community.

On the introduction of this innovative new scheme, Mr. Girish Shah, General Manager - Marketing, Kingfisher Airlines Limited commented, “Kingfisher Airlines has redefined the way the airline category is marketed and promoted. At Kingfisher Airlines, we are committed to delighting the guest every step of the way. The launch of the First Return offer is yet another step towards ensuring that we go that extra mile in providing our guests with an unparalleled overall experience. Having redefined the service experience in the Indian skies, the focus will always be on innovation. As we expand our network of cities served, we will continue to innovate and present exciting marketing and sales promotion initiatives in the months ahead.“

This offer is valid in all cities where Kingfisher Airlines provides the Kingfisher First service.

About Kingfisher Airlines

Kingfisher Airlines is India’s first and only private airline to receive the prestigious, ‘Best New Airline of the Year’ award in the Asia-Pacific and Middle East region from Centre for Asia Pacific Aviation (CAPA). Kingfisher Airlines has also been voted as the 3rd Most Successful Brand Launch of the Year 2005, in the annual Brand Derby Survey conducted by India’s leading business daily-Business Standard. In another Survey conducted by agencyfaqs.com and Brand Reporter, Kingfisher was voted as the 7th Buzziest Brand of 2005 amongst 2000 leading national and international brands. More recently, Kingfisher Airlines has bagged the “Service Excellence for a New Airline” award from Skytrax, a UK based specialist global air transport advisor.

The latest addition to the list of laurels is the “Best New Domestic Airline for Excellent Services and Cuisine” award from Pacific Area Travel Writers Association (PATWA), the biggest travel writers’ organization, representing members from 70 countries across the globe, that conducts independent annual surveys across various industries related with Travel and Tourism in order to select the best in each category. Kingfisher Airlines commenced operations on May 9th, 2005 with a brand new fleet of aircraft. Kingfisher Airlines offers Full Service at True Value and promises an unparalleled experience to the Indian air traveler. On offer are extra-wide seats and spacious leg room, delicious gourmet meals, international-class cabin crew and a whole host of comforts and delights. Kingfisher Airlines also facilitates doorstep delivery of tickets on guest request. Kingfisher Airlines has further raised the bar by introducing the Indian business traveler to a premium product- Kingfisher First, the finest experience in the Indian skies. For more information on Kingfisher Airlines log on to www.flykingfisher.com . Fly the Good Times with Kingfisher Airlines.

Contact Details:

Ritu Bararia , Sr. Manager PR and Corporate Affairs, Kingfisher Airlines Ltd, +91 93508 66639 Email: ritu.bararia@flykingfisher.com

Malini Nair , Manager PR, Kingfisher Airlines Ltd, + 91 93242 39730 Email: malini.nair@flykingfisher.com

Prakash Mirpuri, IPAN, Mumbai, + 91 98210 91715 Email: prakash@ipan.com

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Clarifying its stand on a report related to possibility of an alliance with a carrier in India, MAXjet Airways has stated that there is no truth in Kingfisher Airlines International being in advanced talks with MAXjet for an outright acquisition.

The low-fare, all-business class transatlantic airline shared the “unfounded report was published on July 21 by IST Times News Network, dateline New Delhi.”

“The article printed in the Times of India business section on July 21 is unfounded,” said MAXjet chief executive officer Gary Rogliano. “We never were, and currently are not, in any such discussions to sell MAXjet.”

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The Airports Authority of India (AAI) has constructed a departure passenger concourse module as an extension of the Kamaraj Domestic Terminal (KDT), which has registered a whopping 50 per cent growth in the domestic passenger traffic in the first quarter of this year.

Giving details of the Rs.1 crore KDT Departure-II module, Chennai Airport Director Dinesh Kumar said the 880 sq mt module was equipped with 15 check-in counters and would cater exclusively to four domestic carriers: Air Sahara, Air Deccan, Spice Jet, and Go Air.

Special counters

The highlight of the Departure-II facility would be the “express check-in” counters to facilitate passengers with hand baggage.

These special counters would also segregate those with checked-in baggage and thereby ease the congestion. The existing KDT has nine designated domestic operators including Indian (formerly Indian Airlines), its subsidiary, Alliance Air, Jet Airways, Air Sahara, Kingfisher, Air Deccan, Spice Jet, Paramount Airways, Go Air.

Indigo Airways has announced its intentions to commence operations from October this year.

The Departure-II facility with vitrified anti-skid flooring would have a baggage screening scanner, back-up office facility for the airlines, a snack bar, an Indian Bank Automatic Teller Machine and a Flight Information Display System, to disseminate information about the status of the services. The Chennai Airport handles over 230 aircraft movements. “During the first quarter of 2006-07, a robust growth of 50 per cent has been registered in the domestic passenger traffic,” Mr. Kumar said.

The recent surge in the domestic passenger traffic is attributed to the growing number of low-cost carriers and the full-fledged airlines augmenting their services.

Chairman of the AAI K. Ramalingam, is likely to declare open the new passenger amenity by the end of the month.

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Kingfisher Airlines has introduced the Kingfisher Miles of Chill Times offer for the Kingfisher class travelers. Under the Miles of Chill Times offer, all guests who fly five one way trips onboard Kingfisher Airlines Kingfisher Class can avail a free one way ticket on Kingfisher Class between any two destinations serviced by Kingfisher Airlines.

The guest can also issue the free ticket in anybody’s name. In addition to this, if the guest is also a King Club member, then he/she stands to earn King Miles for the 5 paid sectors plus a bonus of 20 per cent King Miles. The offer is valid until 30 September, states an official release.

Kingfisher Airlines Ltd. marketing head Girish Shah said, “Miles of Chill Times offer is yet another initiative whereby both our regular and loyal guests stand to benefit and enjoy the Good Times. Our focus has always been on innovation and as we expand our network of cities served, we will continue to innovate and present exciting marketing initiatives in the months ahead. ”

Even whilst participating in this promotion, the guests can participate in an SMS based contest run by www.indiatimes.com to win products like washing machines, dish washers and microwaves, adds the release.

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The fourth branch in a test run of the format will open this week at Wednesbury near Birmingham, as Kingfisher considers whether to proceed with a three-year, £200m overhaul programme in the autumn.
The sites devote more space to showroom displays of complete kitchens and bathrooms as the chain looks to get away from aisle-based layouts.
The moves come after profits last year dived 70 per cent in Britain because of a challenging market and the impact of promotional activity.
It will report further negative sales figures on Thursday, although analysts expect a slight improvement on B&Q’s underlying sales performance in the first quarter, which showed a fall of 8.8 per cent.

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MAXjet Airways, the industry’s first low-fare, all-business class transatlantic airline, has confirmed there is no truth in the report that Indian carrier Kingfisher Airlines International is in advanced talks with MAXjet for an outright acquisition. The unfounded report was published on July 21 by IST Times News Network, dateline New Delhi.

“The article printed in the Times of India business section on July 21 is unfounded,” said MAXjet CEO Gary Rogliano. “We never were, and currently are not, in any such discussions to sell MAXjet.”

MAXjet Airways currently flies six times weekly from New York JFK to London Stansted and five times weekly from Washington Dulles to London Stansted. The airline recently acquired its third aircraft and is currently negotiating for its fourth and fifth as it continues its commitment to bring lower business class transatlantic fares to a broader segment of key business cites across the U.S. The new aircraft will allow increased frequencies on existing routes as well as development of new service.

For additional information about MAXjet including its routes, fares and flight schedules, or to book travel, visit the MAXjet Web site at www.maxjet.com or call the airline’s toll-free number in the U.S. at 1-888-I-FLY-MAX (435-9629) or in the U.K. at 0800-023-4300.

About MAXjet Airways

Washington-Dulles-based MAXjet is a low-fare all-business-class transatlantic airline dedicated to bringing greater value to the intercontinental market by connecting key business cities with a high-quality, low-fare business-class product. MAXjet operates Boeing 767s configured with just 102 deep-reclining spacious seats with 60-inch pitch. The extra space greatly increases legroom for each of its passengers who may select either a window or aisle, as there are no middle seats. The airline offers low fares, even for last-minute passengers. Service includes business class leather seats and the traditional amenities of the largest carriers, such as pre-departure beverages, multi-course meals, a Chef’s Pantry, premium liquor, boutique wines, travel amenities, duty free and much more.

In February 2006, MAXjet launched its customer appreciation program called MAXflier, a simple customer-friendly loyalty scheme for MAXjet customers who choose to fly regularly with the airline. Customers who have ‘banked’ enough currency will be able to obtain a free flight. There are no blackout dates, no Saturday night stay requirement or any other limitations often attached to other reward travel. Further details can be obtained at www.maxjet.com.

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Kingfisher Airlines has launched daily services in five new routes, on which it would use ATR-72-500 aircraft to connect seven cities in the country.

The routes are Ahmedabad to Mumbai, Hyderabad to Chennai, Hyderabad to Visakhapatnam, Chennai to Visakhapatnam and Chennai to Kochi, a release issued here today said.

With the launch of the service, Kingfisher has increased its operating flights to 86 and now connects 17 key destinations in the country, the release said.

Kingfisher’s Chairman and CEO Vijay Mallya has said the launch of services in new routes shows the company’s commitment to the needs of the travellers, the release added.

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Kingfisher PLC is planning to spend up to 200 mln stg on refurbishing its 110 biggest B&Q warehouses as part of attempts by the home improvement retailer to get its DIY chain back on track after a 64 pct slump in profits last year, the Financial Times reported.

It said the retailer will announce details of the three-year UK refurbishment programme in the autumn.

Under pressure after six quarters of falling sales at B&Q, Kingfisher is also putting on hold plans to open DIY chains in new markets such as Thailand, India and Malaysia, while it strives to improve at home, the newspaper said.

The retailer is due to update on second-quarter sales on Thursday.

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Kingfisher Airlines, which recently completed the first year of its operations, has run up a debt of close to Rs 950 crore.

The company, during the first quarter-ended June 30, 2006, has raised debt totalling Rs 327 crore, taking the entire outstanding to Rs 942 crore.

According to UB Holdings, the holding firm for Kingfisher Airlines, it has executed guarantees in favour to banks aggregating Rs 327 crore on behalf of Kingfisher Airlines Ltd (KFA) during the quarter, taking the debt up to Rs 942 crore cumulatively to-date. UB Holdings presently hold 83.35 per cent in this firm.

The company had to resort to this kind of debt as its efforts to raise private equity to the tune of $150 million has not materialised. Plans for an IPO, according to the company officials, is at present on the backburner.

However, this has not deterred the company to go in for a massive expansion of its fleet and its routes. According to recent announcements, Kingfisher Airlines is on an overdrive placing $270 million worth of orders for aircraft.

Kingfisher Airlines has placed orders for another 15 ATR 72-500 aircraft. The company has also placed orders for five Airbus A380s, five A350s and five A330s. The deliveries of A330s are expected to begin in 2007 while the A380s and A350s arrive in 2010 and 2012 respectively.

On a more immediate basis during 2006, the company is taking on board two more ATRs, besides four more Airbus aircraft to add to its present fleet of 11 Airbus and four ATRs.

According to the company, it has 13 operational aircraft connecting 15 cities in India through 72 flights in a day. The company also claims that its average load factor is around 70 per cent.

Kingfisher Airlines’ fleet comprises of a mix of leasing and buying from Debis Air, Babcock, Singapore Air Leasing and Airbus.

The company is also in touch with European Credit Agency for soft loans to fund acquisition of aircraft.

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