Kingfisher Airlines Limited Leases India's First A-321-200s from Pegasus Aviation Finance...

SAN FRANCISCO -- Kingfisher Airlines Limited, India's first Full Service-True Value carrier and Pegasus Aviation Finance Company, the world's largest privately-held independent commercial aircraft lessor, today announced the closing of a sale and lease back transaction for two brand new Airbus A-321

aircraft to be delivered to Kingfisher and to India where Kingfisher will be the first operator. This complements Kingfisher's existing fleet of 10 Airbus A-320s and 3 Airbus A-319s. The Airbus A-321 will be powered by IAE V-2500 engines and will be in a two class configuration consisting of 32 Kingfisher First seats and 119 Kingfisher Class seats. Pegasus Aviation Finance Company already leases one Airbus A-320 aircraft to Kingfisher.

Under the terms of the transaction, Pegasus will take ownership of the two A-321 aircraft upon delivery from Airbus, and Kingfisher Airlines will concurrently lease them from Pegasus.

Dr. Vijay Mallya, Chairman and CEO, Kingfisher Airlines Limited said: "We are delighted to have the opportunity of expanding our relationship with Pegasus who have been excellent business partners. Kingfisher will be the first airline to introduce the Airbus A-321 aircraft in India. Given our growth and market share that we have achieved, I look forward to doing more business with fine partners such as Pegasus."

Richard S. Wiley, President and Chief Executive Officer of Pegasus Aviation said: "Pegasus is committed to supporting Kingfisher's growth, as Dr. Mallya and his team have built an excellent business based on delivering exceptional value and customer service. We're thrilled to be a part of the dynamic growth in India's air transport system. These deliveries represent our fourth and fifth aircraft in India, and we're excited about the market's prospects."

Kingfisher Airlines commenced commercial operations on May 9, 2005. All aircraft inducted by Kingfisher are brand new delivered directly from the factory. In a short span of 18 months, Kingfisher has been voted India's favourite Airline apart from receiving 3 international awards. Kingfisher currently is India's fourth largest Airline with a national market share of 9.4%.

Pegasus Aviation Finance Company is one of the world's largest commercial aircraft lessors, with an owned and managed fleet of over 200 Airbus and Boeing aircraft. Pegasus is based in San Francisco and is privately held.