Air India has taken a big step towards placing long-delayed orders for new aircraft, with its board voting to seek government approval to buy up to 50 Boeing widebodies.
Many hurdles will need to be overcome before a firm deal can be placed, and it is anyone's guess as to when, and even if, government approval will ultimately be granted. The airline's board originally selected the Airbus A340-300 for its fleet expansion plan but withdrew that purchase request – made late in 2003 for 10 aircraft – before approval was secured. The airline said it decided to consider a bigger deal for several aircraft types as a result of quicker-than-expected deregulation moves by the government.
Fellow state-owned carrier Indian Airlines has meanwhile been waiting for several years for government approval to order 43 Airbus narrowbodies, without any indication of when the go-ahead may be secured. Air India has also been waiting for some time for approval to order 18 Boeing 737-800s for new low-cost subsidiary Air India Express.
Past delays aside, Air India and the government both say the choice of widebody type represents a big step forward for the airline, which has not acquired new aircraft for many years. As civil aviation minister Praful Patel said recently: "Our country has not bought planes since the time of Rajiv Gandhi."
Its purchase request covers 35 firm orders and 15 options. The firm order portion is expected to cover 20 787-8s, 10 777-300ERs and five 777-200LRs. Air India says it hopes approval will be granted around the middle of next year, allowing for delivery from the end of 2006.
Airbus has meanwhile cried foul, saying it was not a fair competition as the A330, rather than the more suitable A350, was evaluated against the 787. Air India has rejected these criticisms, however, calling Airbus a sore loser. But there are some who believe the controversy may further delay government approvals.
NICHOLAS IONIDES SINGAPORE
Source: Airline Business
