The Hindu Business Line : Govt seeks `reconfigured' fleet acquisition plan from IA

THE fleet acquisition plan of Indian Airlines (IA) will be forwarded to the Public Investment Board (PIB) for clearance only after the Government receives a "reconfigured plan" from the airline.

Scotching rumours that the IA fleet acquisition plan had been scrapped, the Minister for Civil Aviation, Mr Praful Patel, told newspersons that the airline has been advised to reconsider its aircraft needs in view of the changed environment.

"The earlier fleet acquisition plan of the airline has not been scrapped. We have just asked them to take a holistic approach and then come back with various options. This is especially important since there will be a time lag between placing the orders and the new aircraft arriving. In the given scenario, we have asked them to have another look at their needs and then the entire proposal will be taken for PIB clearance," Mr Patel told Business Line.

The airline has already sent its 43 Airbus aircraft fleet acquisition deal, which was cleared by its board in 2002, to the Ministry of Civil Aviation.

The airline had chosen the Airbus A-319, A-320 and A-321 aircraft valued at more than Rs 10,000 crore.

However, senior Government officials said that IA's fleet acquisition plan was based on what the airline's requirement were in 1998-99, when it had at least 10 wide-bodied Airbus A-300 aircraft in operation.

Since then, not only have almost all the A-300 aircraft in the airline's fleet been phased out, the urgent need for finding replacements for Alliance Air, the wholly owned subsidiary, has arisen.

Sources said that the need for a relook at the fleet acquisition proposal has also arisen as complaints have been received from various quarters about the lack of both cargo space and availability of passenger seats on several routes on which the airline operates with its existing fleet.

Besides, the Government has already said that it would offer some new international routes to IA, for which also the airline may have to look at new types of aircraft, sources said.