Financial Daily from THE HINDU group of publications
Thursday, Nov 27, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 27, 2003 |
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Logistics
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Airlines Boeing writes to Air India, makes a case for 777-200 Ashwini Phadnis
New Delhi , Nov. 26 THE last may have not yet been heard on the fleet acquisition proposal of the Maharaja. US-based aircraft manufacturing major Boeing has written to Air India pointing to the benefits of choosing the Boeing 777-200 Extended Range (ER) aircraft rather than going in for its rival Airbus A-340-300 aircraft. The AI board, at its last meeting, had decided to acquire 10 Airbus A-340-300 aircraft to meet its `medium capacity long range' (MCLR) needs and 10 Boeing 737-800 aircraft to meet its `small capacity short range' (SCSR) requirements. The competition in the MCLR category was with the Boeing 777-200 ER while the Airbus A-320 was pitted against the Boeing 737-800 in the SCSR category. The Boeing communication to Air India is said to point to the advantages that would accrue to the Maharaja if it were to go in for the Boeing 777. The aircraft major has pointed out that since the Boeing 777 was a bigger aircraft, it would generate more revenues and, therefore, profits for the airline. Besides, the communication is also said to have pointed to the fact that the aircraft has bagged over two-thirds of the market since its introduction. It also pointed to the long association that Air India has had with the aircraft manufacturer. Official sources, when asked about the communication, merely said that the Board took the decision based on the report of the techno-negotiating committee. "The job of selection of aircraft is left to the technical committee. The board examines the proposal which the technical committee presents before taking a final decision on whether to acquire the aircraft or not," officials said. Air India officials when contacted in Mumbai declined to comment on the communication. "Anyone is free to air his opinion. The board has taken a decision already," sources said. The Air India deal for acquiring 28 aircraft from both Airbus and Boeing is valued at a little over Rs 10,000 crore.
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