Thu, Jan 27, 2005
Open Skies Agreement In Hand, Flag Carrier Is Shopping
What do you do after your very big democracy negotiates an open
skies agreement with the world's OTHER very big democracy? Why, you
go shopping, of course!
That's just what India's flag carrier is doing -- negotiating
with lenders about financing 50 new long- and medium-range
commercial passenger aircraft. That word comes from Indian Civil
Aviation Secretary Ajay Prasad, quoted by the French news agency
AFP while speaking in Singapore Tuesday.
"We have started negotiations with banks for external
financing," Prasad told reporters at a regional aviation
conference.
The Air India buy would be an unusually fast-tempo deal,
according to reports from New Delhi. The negotiations would be
concluded relatively soon, with the first of the 50 aircraft to be
delivered sometime next year.
In fact, Prasad told AFP, the deal is already in the works.
"Technical and financial bids have been received in December 2004.
Air India is likely to come up with firm proposals shortly after
due technical and economic evaluation," he said.
Among the aircraft on the shopping list:
- Airbus 340-500
- Boeing 777-200 LR
- Airbus 340-600
- Boeing 777-300 ER
- Airbus 330-200
- Boeing 7E7-8
One of India's other state airlines, Indian Airlines, is also in
a buying mood, shopping for 43 new aircraft for approximately $2.06
billion. That deal, as well, is on a fast-track, Prasad said.
"The government is expediting necessary approvals so that the
deal could be finalized by the end of this fiscal year (March 2005)
for induction of the first batch of new aircraft by September
2006," he told reporters at the conference.
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