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Air India plans to expand fleet with 1.5 billion dollars

With 22 flights cancelled in a month and 10 planes out of a fleet of 28 grounded for repairs over the past 45 days, Air India (AI) has planned to expand its fleet at a cost over 1.5 billion US dollars.

Aware that its flight schedules are at the mercy of an aging, tottering and unreliable fleet, AI board of directors is scheduled to meet on Thursday to discuss an ambitious plan to turn the things around, according to the Indian Express on Wednesday.

Of the 28 aircraft, five are on dry lease from Singapore, France and elsewhere, leaving the airline with only 23 planes, 17 of which were inducted before 1986.

The unpredictable operations by airlines, which have been flying mainly on foreign routes, means passengers prefer giving AI the miss in favor of foreign airlines, which have a fleet of sleek,fuel-efficient aircraft that provide more comfort and amenities like personal TVs even in economy class and, of course, safety.

Safety factor was highlighted last February when an Airbus A-310, leased from the Paris-based GECAS, developed an engine failure and grounded in France ever since.

Facing with all these problems which have hit its market share,AI board of directors would try to find a way out of the current embarrassment beginning from Thursday in Kochi, a coastal city 1,600 kilometers southwest of here, the Indian Express daily said ina special report.

They are expected to decide how many and which type of aircraft to buy and, if approved, it would invite financial bids from both Boeing and Airbus.

Industry sources said that an expansion was the only way out for AI which has a total workforce of 22,000 including 380 pilots,and the airline needed at least 30 more aircraft to cater to the rising demand in the country.

The main hurdle in the way of the planned expansion is an accumulated loss of over 200 million dollars of the government-controlled corporate, which has heavily depended on a handout from the central government.

Lack of engineers is also a major problem facing by the airline, AI spokesman Jitender Bhargava admitted in an interview with the press here.

Analysts here said an expansion, if realized, could help AI meet the rising demand for seats even as international airlines have been asking the Indian government for permission to fly more flights into the country.

India has reportedly asked Britain for more slots at Headthrow Airport and made similar requests of China, Singapore, and Iran.

However, lack of new aircraft will mean AI either wastes its bilaterals or gets some royalty from foreign airlines to use its bilaterals.


Shanghai Daily news


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