Air India bought 70 aircraft for up to $143 mn each in 3 yrs

The 70 aircraft that Air India has received in the past three years from Boeing and Airbus, have cost it between $37.34 million and $143 million a piece, Parliament was informed today.

National Aviation Company of India (Nacil), the holding company of Air India, is yet to receive another 43 planes out of the total order of 111 aircraft.

"The average cost of (Boeing planes like) B777-200LR, B777-300ER and B737-800 aircraft is $135 million, $143 million and $42 million respectively," Civil Aviation Minister Praful Patel said in a written reply to the Lok Sabha.

"The average cost of (Airbus planes) A319, A320 and A321 aircraft is $37.34 million, $43.63 million and $52.57 million respectively," he added.

Before they merged in March 2007, Air India and Indian Airlines, had placed orders for Boeing's jets like B777, B737-800 and B-787 Dreamliner and Airbus aircraft of A320 family respectively.

The orders were placed by the two carriers separately in 2006. While the Boeing order by Air India was worth over $11 billion, the deal with the Airbus for Indian Airlines was estimated to be at $2.2 billion.

In terms of purchase agreement, Air India was required to pay 15 per cent as advance payment, while Indian Airlines had paid $2,50,000 per aircraft as commitment fee, the Civil Aviation Minister said.

"The payments are made directly by the bank arranging the money and no agency is involved in arranging the funds," he said.

The payment is made following a tendering process/after necessary approvals and compliances, Patel added.