The Air-India board has entrusted its techno-economic cum engineering committee the task of reworking the carrier's fleet acquisition plan. The new plan is expected to be ready by the end of the year.

This follows the Air-India board's decision to rework its Rs 10,000 crore (Rs 100 billion) fleet acquisition plan after the civil aviation ministry pointed out that the Maharaja's original plan was outdated and needed to be upgraded to meet the current market conditions.

A decision to this effect was taken at the company's board meeting held in Mumbai on September 13.

However, the Rs 10,000 crore fleet acquisition plan of Indian Airlines to buy 43 aircraft will go through unchanged after the carrier decided to induct nine wide-bodied aircraft into its fleet.

"The carrier has met the requirements that the government wanted. The initial plan will now go through. We will take the proposal to the public investment board for its consideration," said a civil aviation ministry official.

But, in the case of Air-India, the proposal to acquire 18 Boeing 737- 800 aircraft, for the requirements of Air-India Express will be reviewed, keeping in mind the low cost and low fare model planned by the carrier.

The new plan is expected to cover the operations on the existing routes as well as new routes for Air-India and Air-India Express.

The airline is expected to revise the fleet acquisition plan evaluating the aircraft identified for each route and operations.

Along with this, Air-India will also invite bids from aircraft and aircraft engine manufacturers for acquiring aircraft for its fleet. The airline proposes to follow a twin bid -- financial and technical bid -- process.

The civil aviation ministry had asked Air-India to revise its fleet acquisition plan, considering the recent developments in the global travel market, including the non-stop services to the US started by various international airlines from the Gulf as well as from South East Asia.

Besides, the government also wanted to consider the low cost and low fare model proposed by Air-India Express.

The government also asked Air-India to examine whether the existing proposal for the purchase of short-range aircraft is justified on a standalone basis for Air-India Express.

The civil aviation ministry has pointed out that the proposal to acquire B737-800 aircraft has been included in the fleet acquisition proposal before the plan to start low cost operations.

Altering flight plans

• New fleet acquisition plan to be ready by year-end
• Proposal to acquire 18 Boeing 737- 800 aircraft, for Air-India Express to be reviewed
• The new plan is expected to cover the operations on the existing routes as well as new routes for Air-India and Air-India Express
• Air-India will also invite bids from aircraft and aircraft engine manufacturers for acquiring aircraft for its fleet