The Hindu : CCS to decide on aircraft purchase

Online edition of India's National Newspaper
Sunday, Dec 15, 2002

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CCS to decide on aircraft purchase

By Gargi Parsai

New Delhi Dec. 14. The Ministry of Civil Aviation has sent the proposal for acquisition of 43 aircraft for Indian Airlines and 17 for Air India to the Cabinet Committee on Security (CCS) for a decision.

The proposal was sent to the CCS on Friday, the Minister for Civil Aviation, Shahnawaz Hussain, told mediapersons on the sidelines of an International Conference on Aviation and Tourism. The CCS would be meeting "soon" as the Government wanted to take a decision on the matter quickly. This is the first time that the fleet acquisition plan for the Government-owned airlines has been sent to the CCS.

In an unusual move, the Government has decided that all mega purchases would be vetted by the CCS keeping in view the "geo-political and geo-strategic considerations" with the country from which purchases are to be made. The Committee is chaired by the Prime Minister with the Home Minister, the Finance Minister, the Defence Minister, the External Affairs and the National Security Adviser as members.

Several questions are being raised about the sanctity of technical evaluation by the airlines if the decisions had to be taken at a political level for political considerations. "Technical evaluation is one procedure and the CCS is another procedure," Ministry sources said.

The IA Board of Directors had approved acquisition of 43 Airbus aircraft in March on the recommendation of a sub-committee on technical evaluation. The proposal is to purchase Airbus A-321, A-320, A-319 powered with CFM engine at an estimated cost of Rs. 10,000 crores over five years.

Last week, the AI Board also recommended acquisition of 17 aircraft (either Boeing 777-200 ER or Airbus-330/340) to augment its fleet. While the aircraft type has been identified, financial bids have to be called to evaluate the aircraft company that would be chosen. Both the Seattle-based Boeing Company and the European Consortium Airbus Industries are in the race for selling planes to the two airlines.

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