The Hindu Business Line : `Boeing suited for India'

Dr Dinesh Keskar, Senior Vice-President-Sales & President-Boeing Aircraft Trading, addressing a press conference in the Capital on Tuesday. — Ramesh Sharma

New Delhi , Aug. 31

URGING Indian Airlines (IA) to re-evaluate the long-term profitability plans of the aircraft that it proposes to acquire, the US aircraft manufacturer, Boeing Commercial Airplanes, on Tuesday said that its products were much better suited for the airlines of India, especially now in the changed environment.

Addressing a press conference here, the Senior Vice-President, Sales, and President, Boeing Aircraft Trading, Dr Dinesh Keskar, said that with the acquisition of Boeing aircraft, the country's airlines could achieve greater competitiveness and enhance their product. This, he said, would be in spite of the rising fuel costs, the introduction of point-to-point routes by international airlines as also the advent of low-cost airlines.

Talking about the IA fleet acquisition plan, Dr Keskar said that this should be re-evaluated as operation cannot continue to rise as margins shrink due to competition. The Boeing official added that the Rs 700-crore saving to IA if it were to choose Boeing aircraft still very much "continues." The IA board had, in 2002, approved a proposal to acquire 43 Airbus aircraft at an estimated cost of more than Rs 10,000 crore. The US aircraft manufacturer has written to IA outlining the Rs 700- crore saving if it were to go in for its products instead of what the competition has to offer.

The Boeing official again emphasised on the advantage that Air India (AI) would enjoy if it were to go in for the Boeing 777-200 Extended or Long range aircraft. "The 777-200 ER/LR is the right choice for AI to increase market share, enhance passengers' flying experience and maximise profitability," Dr Keskar said.

Later, answering questions, Dr Keskar said that Boeing has also offered to replace some of the aircraft, which AI has leased from South Korea when the lease comes up for renewal in 2006-2007. Dr Keskar said that the newer aircraft would offer several facilities, including personal television in economy class also. On the issue of whether Boeing had made a fresh presentation to AI and IA as there was a possibility that the two airlines may call for fresh bids for their proposed fleet acquisition programme, Dr Keskar said.