Indian Airlines Seeks To Pay In Rupee For 3 Air India Planes

Indian Airlines is negotiating with Air India to purchase three of its A300-B4 aircraft on rupee terms. If the deal is through, it will be the first rupee denominated aircraft purchase in the country.

Official sources said the price quoted for the planes was $15 million (Rs 45 crore) each which was the approximate prevailing international price. However, the price would depend on terms yet to be finalised.

The planes are being used by Air India in its Gulf routes and have an average age of around 15 years which is considered old by international operating standards. However, for IA they will serve for atleast 5 years on their high density domestic routes. The domestic carrier has decided to use its aircraft for 20-22 years.

 

The sources said IA, at present maintains the AI A300s as the national carrier, does not have the infrastructure and tooling for that type of aircraft. They have the slightly smaller A310 in their fleet which are completely maintained by them.

AI will continue to fly the old A300s until it receives government permission to purchase three A310s which has been cleared by its board and is awaiting public investment board approval. The purchase negotiations will gain momentum after something concrete emerges on the A310 purchase, the sources said.

Meanwhile IA has floated a tender to lease three new Airbus 300s to replace three similar planes which have crossed the 20 year age limit. It has 10 A300s which will all cross the age limit by the year 2000-01 and will have to be grounded.

The sources said AIs A300s will serve the carrier for five years at an incremental maintenance cost of 4 per cent per year as compared to new planes. It would work out to be an economical option if the planes were purchased cheap. The biggest attraction was the rupee purchase terms as it would require no government clearances for raising foreign exchange.