Board fails to reach decision on A-I's aircraft purchase
Mumbai: The Air-India (A-I) board that met here, though deliberated on the Hathi committee report on buying 18 short-range aircraft, did not reach a final decision. The board also met to discuss and approve the budget for fiscals 2002-03 and 2003-04. "The expert committee, which submitted the report to the board, had finalised it last evening after opening the financial bids earlier this week," A-I director, public relations, Jitender Bhargava said. "This report would be taken up for discussion in the next board meeting, the date for which is yet to be finalised," he added. According to sources, the committee was in favour of boeing for the short- range aircraft due its better financial offer, more cargo revenue and slightly increased seating capacity in a two-class layout. A similar report on the acquisition of 10 long-range aircraft with an option of seven more is also pending before the board. An industry source said while the airline made a profit of Rs 105 crore in the financial year 03, it has projected a loss of Rs 55 crore in the current fiscal, mainly due to SARS and global impact on the aviation industry. Setting up a separate ground handling unit and commencement of a low cost airline had not been factored in these projections, he said.
Back to News Review index page