The Indian cabinet has cleared the purchase of 68 Boeing aircraft by state-run national airline Air India. The deal is said to be valued at about 8 billion US dollar (49,6 milliarder DKR), BBC Online reports Friday.
Air India says it needs the planes to add extra capacity. India’s aviation market is estimated to grow to 45 million passengers by 2010.
Of the 68 planes, 50 are long-haul jets for Air India and 18 are for its subsidiary, Air India Express, which is a low-cost carrier mainly serving destinations in the Gulf. The planes are expected to be delivered over a period of 10 years, beginning in 2006.
Air India, which is wholly government owned, has been marginally profitable in the past three years, with net profit of 1,05 billion rupees ( 24 mio. US dollar) for the year ending March 2004.
India had earlier awarded a 2,2 billion dollar contract to Airbus to buy 43 aircraft for Indian Airlines, another state-run airline.
Indias state carriers had not acquired any planes in the last 15 years and these new aircraft will add to the ageing fleet and help it meet growing competition and passenger load in the coming years.
India and China are two of the worlds major aviation markets and the past few years have seen intense competition between Airbus and Boeing to win contracts in the worlds two most populous countries, BBC adds.
