`Ban' on IA fleet acquisition to go

Ashwini Phadnis

NEW DELHI, Nov. 1

THE Indian Airlines' (IA) fleet acquisition plan is to take off in the next few weeks with the ``ban'' on acquisition of aircraft likely to be lifted shortly.

While senior officials at IA headquarters confirmed to Business Line that the ``ban'' was holding up the fleet acquisition plans of the airlines, senior Ministry officials indicated that the ban which was a procedural problem will be lifted shortly.

``The movement of fleet acquisition plan is caught in procedural problems, which could be lifted in a week to ten days,'' senior Ministry officials said. The ban on acquisition of aircraft was put in place as there was a feeling within the Government that the airline should not go in for augmenting its fleet strength when the disinvestment process was under way.

But now with the disinvestment process in shambles and the Finance Ministry showing an inclination towards providing funds for the fleet acquisition plans, the process is likely to be revived soon.

However, official sources cautioned that the mere lifting of the ban did not mean that the airline would be in a position to acquire the aircraft in a hurry.

``The Government will have to look at several issues including market growth, the capacity that the airlines have and its expected growth and whether the types of aircraft being considered are fit to meet the requirements. Furthermore, issues of whether the existing crew can be used or will have to be retrained has also to be examined in detail. But despite all this, the final decision of the type of aircraft to be acquired will have to be taken by the airline board and the Ministry. The Government will just release funds to facilitate the process,'' official sources said.

The airline has already completed the process of evaluating the aircraft which are best suited to meet its requirements. The airline which hopes to induct the aircraft over a five-year period has estimated that it will require between 15 and 17 aircraft of the 100-seater variety, seven-eight aircraft of the 150-seater variety and 15 to 16 aircraft of the more than 150-seater variety.

Among the aircraft which have been shortlisted by the airline are the Boeing 717, Boeing 737-600, Airbus A-318 and Airbus A-319 in the less than 100 to 125 seating capacity. For the more than 150-seater, the aircraft shortlisted include the Boeing 737-900 and Airbus A-321.