SIZEABLE AIRCRAFT purchases by Air India are on the cards following an unexpected move by the Indian Government to allocate $990.6 million for investment by the national carrier in its 1995-6 budget.
The allocation is the highest of all sectors in the Indian civil-aviation ministry. By comparison, Indian Airlines accounts for only $137.8 million investment by the Government.
Air India received a total investment of $484.6 million in the 1994-5 financial year - allowing the carrier to sign for two Boeing 747-400s, worth $366.6 million, earlier this year.
The airline is in the middle of negotiating with Airbus,Boeing and McDonnell Douglas on the purchase of four medium-capacity long-range aircraft as the first part of a major expansion and modernisation programme.
Source: Flight International