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Airlines told to rework fleet plans

Bipin Chandran in New Delhi | July 28, 2004 09:16 IST

The government has asked Indian Airlines to prepare a new plan to induct wide-bodied aircraft into its fleet in the medium term. It has also asked Air-India to rework its Rs 10,000 crore (Rs 100 billion) fleet expansion plan. 
 
"Much has changed since Indian Airlines worked out its aircraft acquisition plan in 1998. We want them to come up with a plan to buy wide-bodied and long-range aircraft," Civil Aviation Minister Praful Patel told Business Standard
 
This move comes even as the domestic carrier awaits the government's approval for its Rs 10,000 crore proposal to buy 43 Airbus 319s, 320s and 321s. 
 
"The plan to buy wide-bodied aircraft is a new one. This will be in addition to the earlier plan of Indian Airlines and will be targeted at meeting its new requirements," said Patel. 
 
According to initial estimates, the plan to purchase wide-bodied aircraft could cost Indian Airlines as much as Rs 10,000 crore. Experts said such aircraft could come in handy when the carrier decided to exploit the international routes that the government planned to throw open to it. 
 
The government not only wants to open up more international routes to Indian Airlines, it also wants the carrier to operate in markets where there are additional capacity and to exploit new routes. 
 
"Indian Airlines planned its acquisition in 1998 and the market condition has changed since then. There are newer aircraft available now. We want it to look at an option to suit it in the longer term," Patel said. 
 
The government also wants Air-India to review its plans of adding 28 short and long-range aircraft to its fleet by 2007-08, as international airlines have started to look at long-range aircraft as a new option.



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