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Rediff.com  » Business » No pressure on govt for acquisition of A-I, IA planes

No pressure on govt for acquisition of A-I, IA planes

Source: PTI
April 28, 2003 14:54 IST
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The government on Monday denied any pressure on it regarding selection and procurement of aircraft for the Indian carriers.

It said it was considering Indian Airlines' proposal for fleet acquisition, but had not yet received the same from Air-India.

Civil Aviation Minister Shahnawaz Hussain replied in the negative in Lok Sabha when asked whether there was any pressure on the government on procurement of planes.

He said Indian Airlines had submitted a project report to the ministry in April last year for acquisition of 43 A-319, A-320 and A-321 from Airbus Industrie between 2003-04 and 2007-08 at a net cost of Rs 10,089 crore (Rs 100.89 billion).

The report was being considered by the government, Hussain said.

He said that Air-India, which also wanted to phase out its aged planes and buy new ones, had not yet submitted any such proposal for government approval.

The two national carriers would raise funds for fleet acquisition through commercial borrowings in Indian and international markets, he said.

There was no proposal of the two airlines for purchase of small aircraft, but the domestic carrier had already inducted small planes for operations in the North-East with financial assistance from North-Eastern Council.

In reply to another question, he said the procedure for airspace management and navigation services conformed with the recommended practices of International Civil Aviation Organisation and was not applicable to defence operations. But no civil flight is allowed to enter airspace without air defence clearance.

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