Ia May Drop 50-Seater Aircraft Purchase Plan
Indian Airlines may abandon its plans to purchase six 50-seater aircraft if the government does not give compensation for operating them on uneconomical routes.
If the government wants us to operate them (the 50-seaters) on uneconomical routes, then it must compensate for the loss of reveneue. Otherwise, we may not go in for this purchase, Indian Airlines managing director P C Sen told reporters here recently.
Operations of 50-seater aircraft in far-flung routes will be totally uneconomical in the existing fare structure, said sen, who is also the joint chairman of Indian Airlines and Air India. The two aircraft will be viable only if they are operated on a commercial basis, he said.
An exercise is currently underway to find out to what extent the fares could be increased for flights operated with the 50-seaters and the response of the market to the move.
Indian Airlines has shortlisted three types of new generation 50-seaters