Wednesday, January 20, 2016

Air India plans to induct 30 Airbus A320 aircraft

New Delhi: National carrier Air India is planning to induct 30 Airbus A320 aircraft, due to a robust growth in domestic air traffic, taking its total fleet size to around 150 planes in the next three financial years.

“We want to capitalise on the domestic market which has witnessed a double-digit growth throughout this year. The yields in the domestic market are much higher for us,” said a senior AI official.

A substantial decline in jet fuel prices, which constitutes around 40 per cent of the total operational cost of an airline, allowed the domestic airlines to offer tickets at lower prices attracting air traffic.

It has also helped the Indian carriers in improving its balance sheet with both SpiceJet and Jet Airways zooming back to profit in the past quarters this year. Fares this year were 15-20 per cent lower than the previous year. Air India will induct up to 15 A320 aircraft on dry lease, without ground staff, insurance and supporting equipment. Deliveries are expected between April-December next year.
20/01/16 Somesh Jha/The Hindu
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