Firm's fortunes hinge on Boeing 787, say experts

New Delhi/mumbai: Air India will lose its first-mover advantage if it cancels its order for 27 Boeing 787 planes, as the waiting period for new orders is upto 10 years, said an aviation industry source.
AI will receive its first Boeing 787 plane by the year-end, while the first ever Boeing 787 Dreamliner will be delivered to Japan's All Nippon Airways next week.
The fate of the Air India-Boeing deal hangs in balance till the government clears the purchase. Last week, the Air India board referred the proposal to acquire Boeing 787s to the Finance Minister Pranab Mukherjee-led Empowered Group of Ministers.
Earlier last week, Civil Aviation Minister Vayalar Ravi had said AI does not have the money to buy new planes, fuelling speculations that the airline will cancel or defer the order.
“Air India does not have a medium haul aircraft which it can use to connect West Asia, South Europe, Far East and Tokyo. Air India had 20 airbus A-310 planes and the Boeing 787 is a replacement for them. The B-787 has a range of 13 hours, burns less fuel, carries 50 percent more cargo. Its a brand new plane and will have less maintenance.That makes it attractive for Air India. Since its a new plane Air India will be able to charge premium on its fares and yields will be higher,” said an aviation industry source.
22/09/11 Business Standard

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Categories: Air India Sep 2011, New Sep 2011