The Hindu Business Line : AI to approach Centre soon with revised acquisition scheme

AIR India will approach the Centre next month with a revised and enhanced proposal for acquiring aircraft to put two priority projects on course - flying non-stop to the US and launching Air India Express, the budget airline.

Speaking to Business Line, Mr V. Thulasidas, Chairman and Managing Director, said the required investment would be at least the `double' envisaged earlier when 28 aircraft were sought to be acquired for Rs 10,000 crore. "I say double not because we have frozen the exact number, which is yet to worked out."

Explaining, he said the international carrier had made the earlier proposal during the time of the previous Government at the Centre. Before the approval could come through, there was an election in the country. "Now, a new Government is in place, with which have had exchanges on the matter. It's been decided that the proposal be given a fresh look," Mr Thulasidas said.

There is a real need for a re-look because Air India will need more aircraft than anticipated earlier - and new types, too. "For example, we're now looking at non-stop flights to the US. That kind of an aircraft was not there in our original proposal. I've now told my people to look for the widest bodied aircraft available today. We've been fighting shy of this option, the Airbus A-380, till now.

"Ideally, I would have wished that we could have acquired these aircraft and sent a supplementary proposal. But it was felt that there should be a composite and revised proposal. Which we are making now."

The original plan was for having 28 aircraft. Of these, 18 will now be required for Air India Express. Air India will need not just the balance 10; it would need many more. Mr Thulasidas hoped to go back to the Government next month with a firm proposal on the number and types of aircraft required.

New destinations: On plans to link new destinations, he said the non-stop flight to the US would be launched in 2006. As for regions towards this side of the Atlantic and further east, flights to Sydney would be resumed in 2005. It would go via Singapore, since there is no great merit in flying non-stop to Australia.

China will be the major destination for the future. "We are flying to Shanghai now. We've plans to step up those flights as well as fly new to Beijing. Japan is one country where we would like to fly more to but the bilateral agreement does not allow this. We have plans to fly more frequently to Hong Kong, one of our existing destinations. We also plan to introduce Air India Express, in addition to Air India, on some of the South-East Asian routes such as Singapore, Bangkok and Kuala Lumpur.

Air India also proposed to fly to Mauritius and onward to South Africa. This is a firm plan for 2005, he added.