Indian lines up plan to spread its wings

Stung by neck-to-neck competition posed by low-fare airline Air Deccan for the second slot, PSU airline Indian, formerly Indian Airlines, is expediting its expansion programmes in full swing.

Indian, which is acquiring 43 A320 family aircraft for Rs 10,000 crore (Rs 100 billion), has asked European aircraft manufacturer Airbus Industrie to advance the delivery schedules.

"We have asked Airbus to advance aircraft deliveries to hasten our expansion programme. We may take delivery of the first aircraft by March 2007 instead of June 2007," disclosed Indian Chairman and Managing Director Vishwapati Trivedi.

Trivedi added that Airbus Industrie will deliver aircraft to Indian on a prority as and when it gets cancellation orders from airline companies across the world. Indian has placed an order for A320 family aircraft, comprising 20 A319s, four A320s and 19 A321s. "We will like to have aircraft tomorrow," he said.

The airline is also planning to introduce long-haul flights to South-East Asian destinations, including Australia and China, apart from enhancing its network on the domestic route.

It is also exploring options to impose a fuel surcharge in the wake of relentess rise in Aviation Turbine Fuel prices. "We have not taken a decision yet. But, we will have to impose a surcharge," he added.

Meanwhile, Indian is in the process of finalising a joint venture for aircraft engine maintenance, repair and overhaul with European aircraft engine manufacturer Snecma, a SAFRAN group company.

"The estimated investment for the engine JV is $150 million and the proposed site is in New Delhi," a source said.

The airline is finalising JV partners for airframe MRO with Airbus entailing an investment of $100 million. "We are even approaching Air-India to participate in the proposed MRO," a source added.