Boeing might be preparing for the party… IF the GOI is not planning otherwise.. 😉
A-I prefers Boeing for $6 bn purchase plan
NEW DELHI: This would, probably, be the biggest corporate victory for the US in India. State-owned behemoth Air-India is planning to award its over $6 billion mega order for purchasing 50 aircraft to the US-based aircraft-maker Boeing.
Together with its low-cost start-up A-I Express — which has already selected Boeing for its comparatively smaller $1-billion order for 18 planes, this would make the biggest order bagged by any single aircraft manufacturer in recent times.
If the Cabinet clears the order, it will be the strongest message yet to the US that India is willing to play hard for great power stakes. Washington’s recent avowals to enable India become a great power in the 21st century have strong economic underpinnings, and for the first time, India is in a position to leverage its economic clout for strategic ends.
Just as the F-16 deal would enhance India’s larger strategic goals with the US, the civilian aircraft order would be a strong political statement.
The plea, favouring Boeing planes over European rival conglomerate Airbus Industrie, is part of an A-I board meeting agenda forwarded to the ministry of civil aviation. According to ministry officials, the order is expected to be cleared in favour of Boeing at the next board meeting later this month.
When contacted, A-I CMD V Thulasidas refused to comment, saying: “I can only discuss the agenda once the board approves it. We will hold a board meeting shortly to take up the fleet purchase plan.”
However, according to ministry officials, the board agenda clearly states that the techno-financial feasibility report favours the purchase of an all-Boeing fleet for A-I.
The report, forwarded for A-I board approval, says the airline’s high-powered committee has chosen a mix of eight Boeing 777-200LR (long range), 15 Boeing 777-300ER and 27 Boeing 7E7-8 planes. The total acquisition would cost a whopping Rs 51,637.29 crore — which is over three times the order size of sister carrier Indian Airlines.
Ministry officials said the report states that a similar mix of Airbus aircraft would have cost Rs 53,433.48 crore, which is 3.4% higher than Boeing’s purchase price.
The Boeing planes, ministry officials said, have been selected in three categories — medium-capacity ultra-long-range aircraft, medium-capacity long-range 350-seater planes and medium-range 250-seater aircraft.
This is the second fleet acquisition plan being proposed by A-I in more than a year.
Sign In
