Air India to augment fleet by leasing 57 aircraft amid boom

Air India Ltd has unexpectedly decided to augment its 148-strong fleet by leasing 57 planes as it pushes to boost capacity amid a boom in the country’s air travel market.
The carrier—already in the middle of a $11 billion (Rs.50,270 crore) programme to buy 111 aircraft—now wants to lease 10 Airbus SAS A330s for international operations, 14 Airbus A320s and Boeing Co. 737s besides smaller planes made by Avions de Transport Regional (ATR) of France and Canada’s Bombardier Inc.
It wants to lease the planes for a five-year period starting early next year, according to the tender document posted on its website.
“Going by the current situation, we will not be able to buy planes to meet our requirements,” said a senior Air India executive on condition of anonymity. “Hence, we are opting (for the) leasing route.”
The move also signals the airline’s intention to try and regain the market share it has lost to rivals such as Jet Airways (India) Ltd, the country’s biggest by passengers carried, especially in local services, with operations now based in the capital.
“We have shifted our network hub to New Delhi from Mumbai,” said the executive. “Now we will add more flights on domestic routes and are looking at reviving regional operations by getting more smaller planes.”
02/12/10 P.R. Sanjai/Live Mint

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Categories: Air India Dec 2010