DAE Capital, the company’s aircraft leasing arm, has picked up three Airbus A330-200 long-haul aircraft that were delivered to Kingfisher in August.

Kingfisher formed an alliance with another Indian airline, Jet Airways, in mid-October, in an effort to cut costs at a time when the Indian low-cost aviation sector is struggling with the impact of soaring fuel costs.

Sale and leaseback deals have become increasingly popular as airlines aim to defer outright ownership of new planes until the market improves.

DAE Capital has plans to buy up to $7bn worth of planes within four years (MEED 17:10:08).