The Hindu Business Line : Ministry to speed up IA's aircraft acquisition

Official sources told Business Line that the Ministry of Civil Aviation would soon write to the Ministry of Finance requesting that the crucial Public Investment Board (PIB) meeting be held at the earliest to expedite the IA fleet acquisition project.

Confirming the move, a senior Government official said that with the airline now re-drawing its fleet acquisition plan to include wide-body aircraft, there should be no problem in the PIB meet being held and a view being taken on the acquisition proposal.

The fleet acquisition plan cleared by the airline Board in March 2002 was for acquiring 43 aircraft, including the Airbus A-319, 320 and 321.

However, the Government was keen that the airline also looks at acquisition of wide-body aircraft, a move which it felt would allow the state-owned airline to start more flights to international destinations. Incidentally, the previous Government had scheduled the PIB meeting for early this year. However, the meeting was cancelled at the last minute.

"The ball has now been set in motion. There will be no delay. We plan to seek Cabinet nod for the acquisition immediately after the PIB meet clears the proposal," the Minister for Civil Aviation, Mr Praful Patel, said.

With the Government nod not forthcoming earlier for its acquiring plans, the airline has been leasing aircraft to meet its immediate needs.

Meanwhile, there is optimism that the fleet acquisition plan of the airline could be cleared before the end of the year.

However, the actual induction of the aircraft is still likely to take between 12 and 18 months.