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Home > Business > Reuters > Report

Air-India to mull aircraft purchase on Jan 24

January 21, 2003 15:42 IST

Air-India's board will discuss on Friday plans for buying new aircraft as part of its largest fleet expansion, a spokesman for the state-run international carrier told Reuters on Tuesday.

"The aircraft purchase issue is on the agenda for both the long and short-haul categories," said Jitender Bhargava.

The airline has already shortlisted Boeing Co's 777-200 and Airbus' A340-300 in the long-haul category, he said.

This category consists of aircraft with more than 250 seats which can fly non-stop for more than 10 hours from India to destinations in the United States, West Europe and the Far East.

The two companies have submitted techno-economic studies of their respective aircraft, which Air-India's board will examine at the meeting.

"In the long-haul segment, the board will deliberate on the matter of buying 10 craft, with the option of purchasing another seven," Bhargava said.

"It is expected the board meeting will also identify the short-haul aircraft in the 150-plus seat category."

Air-India eked out a profit in the past year to March for the first time in seven years, and is likely to post a profit this year too.

Analysts said the expansion is critical if India's national flag carrier is to increase market share and ensure long-term profitability. The airline now operates a fleet of 30 aircraft, considered small by international standards.

"You have profitability and India is a growing market, it is an opportune time for us to expand," Bhargava said.

India, the world's 12th largest economy and the second-most populous nation, has a large expatriate population, estimated at over 20 million people.

The Indian diaspora, which drives air travel from and to India, is concentrated in the United States, Britain and the Middle East.

© Copyright 2003 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.



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