Date:27/02/2005 URL: http://www.thehindubusinessline.com/2005/02/27/stories/2005022701760300.htm

Back IA enters market to dry lease 12 aircraft

Our Bureau

New Delhi , Feb. 26

INDIAN Airlines (IA) has entered the global lease market to dry lease up to 12 wide-body aircraft.

The airline is to choose from among five varieties of aircraft including the Airbus A-330, A-310-300 and A-340 as also the Boeing 767 (Extended range) and the B 777.

The airline, which plans to lease the aircraft for five years, has said that deliveries of aircraft should be available during July this year to October next year. IA is to accept offers for leasing of the aircraft till the end of March.

With this leased fleet, IA would be able to take on competition from both domestic and international airlines. In December last year, the Government allowed private sector domestic airlines to start operating to any part of the globe except to the Gulf region.

The State-owned airline has been looking to lease wide-body aircraft for some time now.

The airline board had, last September, approved a proposal to lease nine wide-bodied aircraft. However, earlier this month the board gave its approval for leasing 12 wide-body aircraft instead of the earlier nine.

An in-house committee of the airline had identified certain international routes, including some on which IA operates even now, as being suitable for operating wide-bodied aircraft.

Even as the airline examines the option of leasing wide-body aircraft, it has begun price negotiations with the European aircraft manufacture, Airbus for purchase of up to 43-Airbus aircraft.