'AI needs 135 planes to rebound'

New Delhi: Six years ago, UPA-I ordered 111 new planes worth Rs 50,000 crore for Air India and Indian Airlines to make way for a "world class" national carrier. Today, the merged AI-IA has no money to pay salaries and a turnaround plan prepared for AI by SBI Caps says it will require another 135 planes to become viable by 2019! The total fleet size required is now pegged at 245 after 10 years.
The plan shows AI will have to induct aircraft in double digits from 2012 to 2018, with the figure dropping to single digit only for the last projected year 2019. Of the 135 aircraft, 37 are twin aisles; 43 single aisles; 15 for AI Express and 40 turboprops.
"Even if we optimally utilise the current fleet, there's no way it can generate the revenue required to meet our existing liabilities. We require over 100 more planes. We have informed this fact to the government," a top management official had said some time back.
The projection comes at a time when UPA-II is wondering what to do with 27 Boeing 787 Dreamliners, whose delivery has not yet started, ordered as part of the order for 111 new planes placed during UPA-1 as there is simply no money.
Air India's aircraft loan was Rs 20,185 crore as on March 31, 2011, and for the 30 remaining deliveries (apart from 27 Dreamliners, 3 Boeing 777 have been deferred) the loan is an additional Rs 17,779 crore.
02/07/11 Saurabh Sinha/Times of India

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Categories: Air India Jul 2011