Air-India's Rs 10,000-crore (Rs 100 billion) fleet acquisition plan has taken a new turn. The civil aviation ministry has advised the airline's board to consider inducting ultra-long range aircraft in its fleet. This could either be the Airbus 340-500 or the Boeing 777.
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According to Air-India sources, the recommendation is being made keeping in mind the national carrier's plan to launch non-stop services on the India-US sector. The new plan will push up the estimated cost of Air-India's fleet expansion by Rs 1,500-2,000 crore (Rs 15-20 billion).
"While the proposal to buy 18 short-range aircraft does not require any change, the ministry has proposed the induction of ultra-long range aircraft in Air-India's fleet. Hence the proposal to acquire 10 long-range aircraft is likely to be changed," sources close to the development told Business Standard.
The Air-India board had earlier approved a proposal to buy 28 new aircraft, including 10 long-range Airbus 340-300s and 18 short-range Boeing 737-800s, over a five-year period.
"The Air-India board is currently examining the number of such aircraft that could be inducted in the fleet. It is an important issue as aircraft acquisition proposals are not considered frequently," sources said.
The idea is to arm the national carrier to fight competition from Asian carriers like Emirates and Singapore Airlines, which recently launched non-stop services from India to the US.
