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Cabinet to take up IA, A-I fleet expansions jointl

December 09, 2002 12:13 IST
By BS Economy Bureau in New Delhi

The ministry of civil aviation is going to propose the fleet acquisitions by Indian Airlines and Air-India jointly to the Cabinet Committee on Security.

"We will seek the approval of the Cabinet on the aircraft acquisitions by Indian Airlines and Air-India simultaneously in order to expedite the process. The proposal will be sent to the committee shortly," Civil Aviation Minister Shahnawaz Hussain said.

The minister, speaking on the occasion of the commencement of Air-India flights from Delhi to Frankfurt, said the national carrier would not introduce any long-haul flight till the new planes were acquired.

The fact that Air-India has not yet asked for financial bids for the aircraft will not be a hindrance because the CCS is not a technical committee, the ministry feels, adding that the committee can decide on the proposal without the bids for the Air-India planes being called in.

Though the minister has not specified any timeframe for sending the proposal to the CCS, the process is likely to take place in the next fortnight.

The Air-India board recently approved the acquisition of 17, 250-seater long-haul aircraft. The aircraft that fit the requirement include Airbus A340-300 and the extended range of Boeing 777-200.

The bids will be called in soon and the selection process is likely to be completed in two to three months.

Airbus and Boeing are vying for Air-India's fleet expansion deal, which is likely to be close to $3 billion.

Boeing representatives have already stated that they will aggressively pitch for the deal.

The Air-India board, however, is yet to clear the acquisition of around 21, 150-seater short-range aircraft.

On the other hand, Indian Airlines' fleet acquisition has been hanging fire from March 2002, with the finance ministry raising objections on the grounds that the airline is on the divestment list.

Indian Airlines plans to acquire 43 aircraft at Rs 10,089 crore (Rs 100.89 billion). The Indian Airlines expert committee has recommended that Airbus A-320, A-319 and A-321 will be ideal for the airline.
BS Economy Bureau in New Delhi

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