An Indian finance ministry panel has cancelled a meeting scheduled for January 29 to consider a plan by state-run Indian Airlines to acquire 43 planes from Europe’s Airbus for about USD$2.1 billion.
“No new date has been set,” a government official said on Wednesday. He gave no reason for the cancellation.
Indian aviation minister Rajiv Pratap Rudy had last week said the Public Investment Board would evaluate the airline’s proposal, which would later go to the cabinet for final approval.
The board of Indian Airlines, the country’s largest domestic carrier, approved the proposal to buy a mix of 43 Airbus A319, A320 and A321 planes as part of a fleet renewal program in March 2002. But the airline needs government approval before placing final orders.
Delays in approving the deal have forced Indian Airlines to lease planes to defend its declining market share.
By: KabirT - 29th January 2004 at 12:05
Its not dropping…its just postponing it….what they have been doingfor the last decade.
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January 28, 2004 at 10:57 pm