The Hindu Business Line : Air India board approves acquisition of 50 aircraft

An official statement issued after the board meeting here said, the national carrier proposes to acquire three types of aircraft, namely, medium capacity ultra long range aircraft (A340-500/B777-200LR); 350-seater medium capacity long range aircraft in a three class configuration (A340-600/B777-300ER); and 250-seater medium capacity long range aircraft in a two class configuration (A330-200/B7E7-8).

Mr V. Thulasidas, CMD, Air India, said the fleet acquisition plan cleared by the board was far more ambitious than any drawn up earlier.

"The current acquisition proposal is in tune with the requirements of today's market, and beyond, to the market of the future," he said. A-I would be able to compete with other international airlines only if it acquired a fleet of this strength, he said.

The plan provides for an increase in fleet size from the present 34 to 74 aircraft. The airline proposes to increase its seat capacity by12 per cent annually.

The airline will invite offers from aircraft and engine manufacturers and subsequently undertake a techno-economic review of the offers received.

The board has also decided to process the acquisition of 18 737-800 W aircraft, which it had earlier selected for its small capacity short-range operations, in the name of its subsidiary company, Air-India Charters Ltd, after updating the project report based on low cost, low fare operations.

On induction, these aircraft will be used to replace the leased capacity to be deployed by Air India Express when it commences operations in April 2005, the statement said.

The fleet acquisition plan, which covers a period up to 2012-2013, provides for replacement of two B747-300 aircraft; 19 A310-300 aircraft (including 11 leased ones); and five leased Boeing 747-400s in Air-India's present fleet, the statement said.