NICHOLAS IONIDES / SINGAPORE
The Indian government has promised to "fast-track" long-delayed fleet modernisations for Air India and Indian Airlines after formally removing the carriers from the list of state-owned companies slated for privatisation.
The government tried in 2001 to privatise both airlines but the attempts failed. In Indian Airlines' case the final two bidders were disqualified while in Air India's case the sole remaining bidder - Singapore Airlines in partnership with local conglomerate Tata - withdrew.
But the airlines officially remained on the government's disinvestment list, barring them from making major purchases, until last week. The government says aircraft order plans can be formally considered that now that they are off the list.
Since early last year Indian Airlines has sought government approval to order 43 Airbus A320-family aircraft while Air India is planning to soon request approval to order up to 17 Airbus A340-300s or Boeing 777-200ERs. Air India is also considering orders for 18 150-seat narrowbody aircraft.
Air India's board last met on 12 April to consider a report from a technical committee and industry sources say the committee is favouring the 777 over the A340. The Airbus offering is still officially in the running, however.
A decision is "imminent", says the carrier, which adds that its board may meet as early as this week to confirm its selection.
Air India last placed a sizeable order for new aircraft more than 10 years ago and says new long-range widebodies are badly needed for growth, mainly for services to the USA. Most of the carrier's current fleet of 30 Airbus A310s and Boeing 747s is leased.
Firm orders are expected for 10 aircraft, while another seven will be taken as options, for delivery over five years. The narrowbody plans will be considered later. A type selection by the airline will not constitute a formal order, however, as the board's recommendation will have to be considered by several government departments.
Source: Flight International
