More than a decade after studies began, state-owned Air India and Indian Airlines have finally ordered a wealth of new Airbus and Boeing types to help them renew and expand their ageing fleets.
Neither airline had ordered new aircraft in well over a decade, despite being close to deals so many times. Over the years their frequently amended plans have had to be deferred because of government interference and for other political reasons, forcing them to rely heavily on leasing used aircraft – while competitors have been able to grow without such interference.
Air India had been seeking government approval to order up to 68 new Boeing narrowbodies and widebodies since April 2005. The carrier finally sealed a deal with the manufacturer at the end of 2005, after government ministers said that new concessions had been secured from Boeing and engine maker General Electric.
The carrier originally planned to place firm orders for 53 aircraft and take 15 options, but the deal it ultimately concluded was for 68 firm orders, comprising 50 777-200LR/300ERs and 787s, as well as 18 737-800s for low-cost subsidiary Air India Express. Air India said the order was boosted as the market has grown much more quickly than expected since its board first approved the proposed deal early in 2005.
Indian Airlines had, meanwhile, been awaiting government approval to order 43 Airbus narrowbody aircraft for several years and backing finally came late in 2005. The government approval enabled the carrier to firm up a letter of intent with the manufacturer and a formal purchase agreement is expected to be signed shortly. All 43 A320-family aircraft are to be on firm order. The carrier is also looking to lease several widebodies for new European services.
Deliveries to both airlines are due to start before the end of 2006. ■
NICHOLAS IONIDES / SINGAPORE
Source: Airline Business
