Airline merger whets fleet appetite

New Delhi: The merged entity of Air India and Indian may buy more planes than the 111 ordered by them last year since their old carriers will be used by a new cargo subsidiary.
The airline will also take a call on using the Star Alliance of global airlines. It is exploring the possibility of being a part of the alliance, to connect to European cities and set up facilities at an European airport which will be its continental hub.
Senior civil aviation ministry officials said the merged airline would retire nearly 65 aircraft over the next three years. Moreover, with demand for both domestic and international travel increasing, the airline would need to add to its fleet strength.
The airline is likely to go in for a mix of aircraft purchases and dry leases. Many of the old aircraft are likely to be given to the new cargo subsidiary, which Air India plans to float.
Air India has already started flights to Europe with cargo freighters earlier this month. These were converted from old A310 passenger planes at a cost of $16 million. The flights terminate at Frankfurt and Paris. Indian Airlines’ freighter services, which it had started with five old planes, will be incorporated into the new cargo airline.
22/07/07 Jayanta Roy Chowdhury/The Telegraph

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Categories: Air India Jul 2007, Indian Jul 2007