Air India set to halve Dreamliner order

New Delhi: Cash strapped Air India is set to halve an order for Boeing 787 Dreamliners and prune overall fleet expansion plans as the government sets tough terms for an equity infusion.
The airline’s board of directors on Thursday approved a proposal - which is being sent to the ministry of finance - slashing the purchase order from 27 to 14 Dreamliners.
Sources said final decision will rest with the ministries of finance and civil aviation since the government will have to fund the purchase.
The move comes just after the Comptroller & Auditor General (CAG) ticked off the airline management for undue haste in ordering aircraft earlier. The Dreamliners are part of the same order.
Deliveries are delayed by over three years and the first aircraft is expected only this December.
The aircraft are crucial for Air India’s turnaround since the airline currently lacks any medium-haul aircraft in its fleet. Once the aircraft start arriving, the airline would reopen lucrative sectors such as Malaysia.
16/09/11 Sindhu Bhattacharya/Daily News & Analysis

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Categories: Air India Sep 2011