Air India board opts for Dreamliner purchase
16 Sep 2011
New Delhi: The Air India board has decided to go ahead with the purchase of 27 Boeing 787 Dreamliner aircraft, ordered earlier in 2005. The decision, taken at its meet in Delhi Thursday, comes even as the flag carrier is labouring to reduce a mountain of debt and battle shrinking market share.
The board also approved the appointment of Rohit Nandan as the new chairman and managing director.
According to the newly installed CMD, Rohit Nanadan, the Air India board agreed that the 27 aircraft were essential to expand operations and swing the airline back into profitability.
Other than saying that the board had recommended purchase Nandan declined to elaborate.
Doubts have been raised about the ability of the debt-ridden carrier to repay the Rs17,000-crore loans needed for these futuristic aircraft.
The board's recommendation will now be taken up by the group of ministers (GoM) who will pronounce verdict at their meet sometime next month. The GoM is overseeing Air India's restructuring exercise.
