French Prime Minister Jean-Pierre Raffarin pressed the Indian government on Thursday to speedily approve a $2.1-billion order of Airbus planes by Indian Airlines.
The state-run carrier recommended last March the purchase of 43 A319, A320 and A321 planes over five years as part of its biggest ever fleet upgrade. But it needs the Cabinet's nod to go ahead with the order.
"Indian Airlines has chosen to buy 43 Airbus planes," Raffarin said at the Aero India air show air show in Bangalore. "It's my strong wish the choice be finalised soon."
No timeframe has been set for a decision, but French Finance Minister Francis Mer, who accompanied Raffarin, said: "Without being finalised, the deal is looking increasingly certain."
However industry officials say Airbus's US rival Boeing Co is lobbying the government to reverse the deal, which will double Indian Airlines' jet-engine fleet of 41 Airbus planes.
It could be a crucial order for Airbus, which says it is about to wrestle the industry top spot from Boeing this year with 300 deliveries.
In an apparent sweetener, Raffarin suggested a joint manufacturing of aircraft parts with a local partner, adding: "Of course, you need to order the planes to get production going."
He said Airbus already had "a true industrial partnership" with India's state-run Hindustan Aeronautics Ltd, supplying doors for the A320 and Indian engineers helping develop wing units of the wide-bodied A380, expected to be rolled out in 2006.
Later, Airbus spokesman David Velupillai told a news conference the European consortium was in talks with HAL and "we expect them to end up manufacturing some parts of the A380" that could include nose-landing
Fresh pitch
Raffarin will have a chance to push the case for Airbus in talks with Prime Minister Atal Bihari Vajpayee in New Delhi on Friday.
He can also make a pitch for the long-haul fleet renewal of state-owned Air-India that will be the international flag-carrier's biggest expansion.
"Airbus, with its A340 range, offers highly competitive planes," he said.
The fleet upgrades are seen as key to the airlines' ability to be competitive after sales were put on hold in 2001 due to lack of demand.
Air-India, which has some 30 planes, has opened bids for firm orders for 10 long-haul 250-seat aircraft and an option to buy seven more. But Airbus faces stiff competition from Boeing's extended range version of 777-200s.
Air-India's board has also approved a plan to buy 18 small-capacity short-range aircraft, for which it has invited bids from Airbus to supply A321s and Boeing for its 737-900.
Raffarin's comments came as the Turbomeca unit of France's Snecma group, the aero-engines maker, signed two deals with HAL worth $300 million, one to sell 300 helicopter engines and a second to jointly make a further 300.
A third deal involves repair and overhaul of helicopter engines.
