The Hindu Business Line : AI board may review fleet acquisition plans

THE next few days are likely to see a flurry of activity in domestic aviation with the boards of at least two public sector entities scheduled to meet in the next 48 hours.

While the board of the Airports Authority of India (AAI) is scheduled to meet in Delhi on Wednesday (July 28) the action shifts to Mumbai the following day for the board meeting of Air India (AI).

The AI board meeting comes close on the heels of the last meeting on July 17, which had recommended the leasing of more aircraft. While AI officials refused to speak about the board meeting, senior Government functionaries indicated that the Maharaja would have to take a complete re-look at the fleet acquisition plans based on its long-term requirements.

Official sources indicated that once the airline had decided on its requirements, be they long or short-term, there should be little difficulty in getting Government clearance to acquire the aircraft.

"The process to acquire will be the same as had been initiated by the previous Government and both State-owned airlines will need to seek clearance from Cabinet Committee on Economic Affairs and the Cabinet Committee on Security before placing orders. But if an acquisition proposal is presented to the Government it will be expedited," a senior Government official said.

In the case of Indian Airlines, Government sources indicated that if the airline decided to acquire wide-bodied aircraft, then that proposal will be taken up separately from the on going work to acquire up to 43-Airbus aircraft.

"At the time of drawing up its proposal IA has not factored in that the Airbus A-300 aircraft, of which they had 10 in 1998 are now almost non functional for the airlines.

Besides, they are also looking at wide-body aircraft options, all this needs working," sources said when questioned on why IA had to rework the acquisition proposal.