Govt to reopen airline fleet purchase plan

Civil Aviation Minister Praful Patel said the civil aviation ministry would ask the Air-India board for a fresh aircraft acquisition proposal and review Indian Airlines' airline acquisition plan. 
 
"We will ask the Air India board for a fresh proposal based on the current scenario and a fresh action plan. At the same time, we would take a relook at the proposal of Indian Airlines," Patel said. 
 
While the IA fleet acquisition programme has reached the pre-PIB stage, the A-I aircraft buying proposal is still at the board approval stage. 
 
"It is important for us to re-examine the critical issues before taking them forward for approval. We would like to examine the methodology adopted (for the deal)," he added. 
 
In a parallel move, the ministry will also re-examine the entire airport modernisation and privatisation programme of the Delhi and Mumbai airports. Patel will meet Naresh Chandra and its committee -- which drafted the framework for the formation of the country's civil aviation policy --

on Tuesday in Delhi. 
 
Since June 4 is the last date for submitting an expression of interest for the airport privatisation programme, Patel said the ministry's position would be announced on June 2. 
 
The move to take a look at the aircraft purchase deal, according to industry sources, has larger implications. It may lead the government to inviting fresh bids from aircraft manufacturers with new specifications being identified in terms of the aircraft types and other details like class configurations. It could also delay the much awaited expansion plans of both the carriers, even though Patel said this would not be the case. 
 
The A-I board had recommended acquisition of 10 long-haul and 18 short-haul aircraft, which would entail an investment of around Rs 10,000 crore (100 billion). 
 
While Airbus 340-300 was recommended for short-range categories, the Boeing 737-800 was for long-range. The IA fleet acquisition programme included acquisition of 43 aircraft from Airbus.