Boeing is working on plans for maintenance and pilot training facilities in India to meet commitments made in return for an order from Air India for 68 aircraft.
Last week state-owned Air India formally confirmed a long-planned order for eight 777-200LRs, 15 777-300ERs and 27 787-8s, as well as 18 737-800s for its low-cost unit Air India Express. Government approval came in December after Boeing agreed to invest in a regional maintenance, repair and overhaul base as well as a pilot training facility in India. Boeing says that “details of this effort are to be finalised over the coming months”.
India’s government says concessions secured from Boeing and engine maker General Electric total “a little more than Rs10 billion [$222 million]”. It says Boeing and GE will install four full-flight simulators in the country worth up to $75 million; establish maintenance, repair and overhaul capabilities worth up to $100 million; and provide training worth up to $10 million. GE has also agreed to invest up to $20 million in an engine shop, the government says.
In addition, offsets were secured worth 30% of the value of the aircraft, which “works out to approximately Rp8.5 billion”.
The order is Air India’s first for new aircraft in more than a decade. Deliveries of the 737-800s are to begin in November while the first 777s will be delivered from January 2007.
NICHOLAS IONIDES/SINGAPORE
Source: Flight International
