Airbus and ATR worst affected if Kingfisher fails

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Airbus and ATR will be hit hard if India's Kingfisher Airlines fails, according to data in Flightglobal's Ascend database.

The ailing airline is being squeezed by the government for non-payment of taxes and fees. Lessors such as DVB Aviation Finance said they could repossess aircraft if the situation continus.

Kingfisher operates 31 Airbus A320 family aircraft with International Aero Engines V2500 powerplants, and 25 ATR-72-500s. It has 68 A320s and 38 ATR-72-600s on order. Kingfisher also has A330s, A350s and A380s on order and holds options for a variety of aircraft, according to Ascend.

If Kingfisher were to cease operations, the 31 A320s hitting the market would likely depress values. Furthermore, these models are powered by the V2500 engine, which is generally considered harder to place in a remarketing situation, say lessors. Lease rates tend to be softer as well, they add.

A Kingfisher liquidation would sting the A350 and A380 programmes, although the airline holds only five firm orders for each.

Kingfisher holds an order for 15 A330-200s. A loss of this order would free up some early delivery positions for this in-demand aircraft.

Airbus is a wholly owned subsidiary of EADS, which also owns half of ATR.