The Hindu Business Line : `Airbus remarks not to hit IA order for 43 aircraft'

THE top brass of European aircraft manufacturer Airbus Industrie can rest easy. The recent spat over Air India's (AI) decision to purchase 50-Boeing aircraft will not affect the proposed purchase of 43-Airbus aircraft by Indian Airlines (IA) that is currently awaiting the final approval of the Government.

Sources said that Airbus will not be penalised for making accusations that the AI deal was influenced by decisions other than commercial considerations.

AI's Rs 30,000-crore deal for purchase of 50 aircraft was recently bagged by Boeing.

"The recent outbursts by Airbus will not affect the on-going aircraft acquisition process in either Indian Airlines (IA) or AI. The IA acquisition is well on its way and there is no attempt to stall it. Similarly, the AI project will be taken up soon," sources told Business Line.

While in 2002 the IA board decided to purchase 43 Airbus aircraft, the AI board cleared a proposal to purchase the 50 Boeing aircraft on April 26 this year. Both the proposals have to be cleared by the Government before the two airlines will be in a position to purchase a new aircraft.

A day after the AI board decision, a senior Airbus official called for sending all the papers connected with the acquisition deal to the Central Vigilance Commission (CVC).

"We are questioning how the evaluation was done. We feel it was not fair and are astonished at the decision. It is a massive blow to us. We hope to have a meeting with AI and will try and call its board members. We trust that the Government will look at the entire process in a dispassionate manner," the Airbus Vice-President, Sales, India Subcontinent and South Asia, Mr Nigel Harwood, said.

However, AI has denied any wrong doing in the selection process and maintained that the airline had not deviated from the specifications prescribed in the request for proposal (RFP).

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