National

IA to lease more aircraft

By Our Special Correspondent

NEW DELHI JUNE 27. Taking note of the current market dynamics, the Board of Indian Airlines today constituted a committee to assess and finalise the requirements of additional leased aircraft capacity.

With the market share of IA dwindling to 41 per cent, the domestic carrier is said to be keen on leasing a few more Airbus A-320 aircraft. At present, the IA has eight leased A-320 planes and three more likely to join the fleet next month, sources said.

The Board also approved a proposal to set up a wholly-owned subsidiary of Indian Airlines to carry out airport handling and allied services. At its last meeting on March 27, the Board had authorised the management to set up a subsidiary company with an authorised capital of Rs. 100 crores and paid up capital of Rs. 10 crores to provide ground-handling services to its own air services and to air services of other domestic and foreign airlines.

However, the issue of ground handling being taken away from domestic private operators has triggered a controversy and a final decision is expected to be taken by the Cabinet Committee on Security (CCS).

The Board approved the extension of the voluntary retirement scheme by another two months. It was due to expire on July 17. It was also apprised of re-appointment of New India Assurance Limited to manage its aircraft insurance renewals.

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