The Hindu Business Line : e-GoM likely to finalise IA fleet purchase today

INDIAN Airlines (IA) could cross the final hurdle to purchase 43 Airbus aircraft tomorrow. The four-member e-Group of Ministers (e-GoM), which begins final price negotiations with the European aircraft manufacturer, Airbus Industrie, is expected to conclude the agreement tomorrow evening itself.

Official sources indicated that tomorrow meeting would be the "final sitting" for the price negotiations.

The e-GoM is headed by the Finance Minister, Mr P. Chidambaram, and includes Minister for Civil Aviation Mr Praful Patel, Minister for Law Mr H.R. Bhardwaj, and Minister for Programme Implementation Mr Oscar Fernandes. Apart from the Senior Vice-President, Dr Kiran Rao, the Airbus delegation will include senior officials from the finance, contract, and customer services departments.

Even if the price negotiations are completed tomorrow it is likely to take some more before IA is able to sign the deal with Airbus. The airline will receive the first new Airbus aircraft 15-18 months from the date when the contract is signed.

Late last month the Cabinet Committee on Economic Affairs decided to refer the matter of the price that IA would pay for the proposal to an e-GoM. The move to set up another committee to consider the price at which IA would acquire the 43 Airbus aircraft was mooted after some Parliamentarians raised questions as to whether the European aircraft manufacturer had quoted a lower price for a similar deal to an airline in South-East Asia.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`Chetan' passes Siachen tests

e-GoM likely to finalise IA fleet purchase today

Outer harbour development — Tuticorin port invites bids for feasibility report

Kailash Shipping opens CFS in Chennai

Tea shipments via Amingaon ICD up

Four Soft buys DCS' logistics software unit for Rs 85 cr

Rajasthan to roll out 2 more luxury trains

Chock-a-block

Ahmedabad comes to grips with its helmets