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A-I to buy over 25 long-range jets

Rumi Dutta in Mumbai | July 31, 2004 12:15 IST

Air-India is planning to buy more than 25 long-range planes in the second phase of its fleet acquisition programme.

This is in addition to the 28 aircraft it had announced earlier that it would be acquiring at a cost of about Rs 10,000 crore (Rs 100 billion).

This is an outcome of the airline's decision to pass on the 18 medium-capacity short-range aircraft (Boeing 737-800s) it had planned on acquiring in the first phase of its aircraft acquisition programme, to Air-India's low cost arm, Air-India Express.

Air-India chairman & managing director V Thulasidas told Business Standard: "We are now looking at a second fleet acquisition plan for long- range aircraft and intend to have a 60-70 strong fleet.

"This is required to position ourselves as a prominent international carrier. An internal committee is studying the market and the specific need for these aircraft. We will raise money from the international market to fund the acquisition programme," he added.

The ultra long-range aircraft that Air-India now wants to buy could either be Airbus 340s or Boeing 777s.

"While we plan to start our low cost operations with a leased fleet, A-I Express will eventually have its own aircraft. A-I Express will get 18 out of the 28 aircraft to be acquired in the first round of acquisition programme," Thulasidas added.

The carrier's initial fleet expansion had envisaged the acquisition of 28 Aircraft -- 10 long range Airbus 340-300 and 18 short range Boeing 737-800s.

The first phase of A-I's acquisition programme would have resulted in a 53-aircraft fleet. This is because A-I was to replace some of its existing planes with new ones. So A-I would have raised its capacity by just 40 per cent.

A-I has now switched focus to the second phase, which will eventually make up for the shortage of Aircraft in A-I's fleet. The airline is planning to double its capacity in the next two-three years.


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