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AI to open bids for Airbus lease today

Our Bureau

NEW DELHI, Aug. 10

AIR India is to open the financial bids for dry leasing of three to four Airbus A-310 aircraft in Mumbai tomorrow, the airline board decided here today.

``The financial bids of the two shortlisted aircraft leasing companies will be opened tomorrow and we hope to complete the whole process within the next two to three weeks. The aircraft should join the fleet some time in November-December this year,'' AI sources said. The lease period is likely to vary from three to five years, officials said.

Sources said the aircraft will be in India in time for commencing operations when the winter schedule comes into effect. The leased aircraft could see the airline offer additional flights on several sectors, including India-Singapore, India-Thailand and India-Gulf, among others.

However, officials refused to divulge the names of the two leasing companies whose financial bids are to be opened tomorrow. Sources indicated that if the need for more aircraft arose, the airline may re-tender at a later date. Senior officials had earli er indicated that the airline will dry lease four to five A-310 aircraft.

The airline was forced to re-tender for dry lease of Airbus A-310 aircraft as the company shortlisted for supplying the aircraft leased the aircraft to another airline before AI could take a final decision.

Currently, AI has a mixed fleet of Airbus A-310 and Boeing 747 aircraft. Leasing is one of the routes being examined by the airline to improve its financial health. Among the other options being explored is going in for code-share and block space agreeme nts. AI has already entered into 10 such agreements, the latest being with Virgin Atlantic Airways to operate on the India-UK route.

Shrinking fleet strength has forced the airline to withdraw from several lucrative sectors, including some in Europe.