The Hindu Business Line : IA fleet acquisition process to move soon

THE Rs 10,000-crore 43-aircraft fleet acquisition plan of Indian Airlines, which has been pending with the Government since 2002, could finally get the green signal soon.

Official sources said that with the airline board clearing a proposal for leasing nine wide-bodied aircraft last Wednesday the acquisition proposal could also now have a smooth ride in the corridors of power. While officials refused to say when the Public Investment Board (PIB) meeting would be convened, sources indicated that things were likely to move forward now that there was greater clarity on what IA's plans were for the future.

The Government had been keen that IA revisit its 43-aircraft acquisition plan to include some wide-bodied aircraft so as to be in a position to operate on more international routes and upgrade services on offer.

Sources said the necessity for IA to revisit its acquisition plan arose as the plan was based on the airlines requirements in 1998-99, when it was operating at least 10 wide-bodied Airbus A-300 aircraft.

Since then, not only have almost all the A-300 aircraft in the airline's fleet been phased out, but there is also an urgent need to find replacements for Alliance Air, the airlines wholly owned subsidiary of IA.

Besides, there was a feeling that one of Airbus aircraft being considered was not the correct replacement both in terms of the number of passengers it could seat and distance it could fly.

Sources said that the need for a re-look at the fleet acquisition proposal had also arisen as complaints had been received from various quarters about the lack of both cargo space and availability of passenger seats on several routes.

The airline board, last Wednesday, approved the induction of nine wide-bodied aircraft, including replacement for the existing three wide-bodied A-300 aircraft.