The Hindu : AI may decide on buying new aircraft today

Online edition of India's National Newspaper
Saturday, Apr 12, 2003

National

National

AI may decide on buying new aircraft today

By Vinay Kumar

NEW DELHI APRIL 11. Air India is holding its board meeting in Mumbai tomorrow amid indications that it may take a decision on the report of the technical sub-committee relating to acquisition of 17 new aircraft over the next few years.

The international carrier intends to place orders for medium capacity long-range (MCLR) aircraft with a seating capacity of about 250 to 275 passengers.

The technical sub-committee, which had reportedly examined the options available in the global market, would apprise the board of its findings, sources in the Civil Aviation Ministry said.

The Ministry was in no mood to interfere at any stage with the airlines' decision-making process, least of all with the technical aspects, and would go by the board's decision, the sources added.

Several factors are understood to be under consideration of the sub-committee. Sources said that in the range of MCLR aircraft, two passenger planes — Boeing 777-200 ER and Airbus 340-300 — fitted the bill. It would be for the board to weigh the pros and cons before narrowing down its choice.

At a time when global aviation scenario is passing through a disturbing phase, the mega deal is being keenly eyed by Boeing of the U.S. and the European consortium, Airbus Industrie.

After the board decision, the next step would be to cross the pre-Public Investment Board (PIB) hurdle.

The proposal would then need the approval of the PIB, the Cabinet Committee on Economic Affairs and the Union Cabinet.

Air India has not purchased new aircraft during the past five years and during 2001-02 it incurred an expenditure of Rs. 428.55 crores for the maintenance of its fleet, which is likely to go up to Rs. 445 crores during 2002-03. At present, it operates 30 aircraft, including nine Airbus 310-304, six Boeing 747-437B, eight Airbus A310-300 and four Boeing 747-237B.

Air India has also been contemplating joining one of the global alliances to achieve its strategic objectives as it could be advantageous to the airlines' long term operational strategy, its route network, its approach to emerging markets, fleet plan and schedule of aircraft acquisition.

The process of evaluating the pros and cons of joining the alliance is underway, sources said.

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