Express News Service
Mumbai, Jan 12: A landmark agreement has been etched with national carrier Air India and US aircraft manufacturer Boeing concluding a deal for the purchase of 68 aircraft. It is the single largest order placed by any Indian airline.
A-I’s chairman and managing director V Thulasidas and Boeing Commercial Planes’s president and chief executive officer Allan Mulally signatured the deal valued at a list price of $ 11 billion (Rs 49,500 crore) at the airline’s headquarters here today. The induction of these aircraft will be done in a phased manner and the first aircraft 737-800 will fly in Indian skies in November 2006.
Thulasidas said the combination of these aircraft will offer low operating costs and give competitive edge to A-I and its subsidiary Air India Express. ‘‘It will enable A-I to significantly expand its fleet and offer unprecedented comfort and flights on several new routes,’’ said Thulasidas, adding that the aircraft will have all passenger amenities currently available in the industry.
Mulally said the year 2005 saw an ‘‘incredible order of 1029 aircraft.’’ Boeing has agreed to invest $ 100 million in setting up a regional maintenance, repair and overhaul base in India and also another $ 75 million towards pilot training and simulator facilities among others in a bid to improve the aviation infrastructure.
Civil Aviation Minister Praful Patel pointed out that there was a demand for a level playing field for Air India and Indian Airlines and the process for procurement which was taking far too long is now completed in record time. Patel said an element of transparency was brought in the deal as past experience showed that it was ‘‘grounded and bogged in controversy’’.