Cabinet to take a call on Boeing 787 by January-end

New Delhi: The Union Cabinet is likely to take a call by January-end on the proposal to buy Boeing 787 aircraft for Air India. Air India has ordered 27 such aircraft, whose delivery has already been delayed by over two-and-a-half years.
Meanwhile, concerns have been raised over the sale and lease-back model of acquisition proposed for these aircraft.
The airline has issued a Request for Proposal (RFP) for sale/leaseback of the Boeing 787 aircraft.
On the other hand, the cash-strapped company has already drawn plan for utilisation of the aircraft from March, 2012
.This includes some long haul flights to Europe and the UK and medium haul flights to South-East Asia and the Gulf.
A person familiar with the development told Business Line, “The Cabinet is expected to discuss three options. The first is to approve the order for all 27 aircrafts, the second is for 14 aircraft and the third is cancellation of the order. The aircraft purchase issue will be a part of the turnaround plan.”
The company was expected to receive its first B-787 aircraft this month, but this has been delayed.
19/12/11 Shishir Sinha/Business Line

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Categories: Air India Dec 2011, Foreign Dec 2011, New Dec 2011