Air India nixes Boeing proposal on 3 planes; sticks to original order

New Delhi: After dilly-dallying for many years, Air India has decided to take delivery of three Boeing 777 planes as per 2006 purchase agreement while rejecting the US aircraft maker’s proposal to convert them into single-aisle planes.

The decision, the first major one under new Chairman and Managing Director Ashwani Lohani, was taken at the airline’s board meeting today, according to sources.

Besides, the board has given its go ahead to lease 14 fuel-efficient Airbus A320 new engine option (neo) planes from a Kuwaiti lessor.

“The board has given its approval to Air India to go ahead with the deliveries of three Boeing 777-300ERs. A decision in this regard has been pending for over seven years,” sources told PTI here.

As part of its fleet expansion plan, the national carrier had in 2006 placed orders with Boeing for 68 aircraft – 27 Dreamliners, 15 B777-300ERs, eight B777-200LRs and 18 B-737- 800s.

Out of the total, the airline has taken delivery of 21 Dreamliners, 12 777-300ERs, 8 B777-200LRs and 18 B-737-800s. However, the delivery of three B777-300ERs was deferred in the wake of downturn in global aviation sector in 2008 as there was no “cancellation” clause in the original purchase agreement with Boeing Company.

Later, Boeing had offered Air India 11 single-aisle aircraft in lieu of these three wide-body planes.

With a final decision on the matter hanging fire for a long time, a three-member panel set up by Air India had looked at the pros and cons of the proposal made by Boeing.

Sources said the board today approved leasing 14 Airbus A320 planes from a Kuwaiti lessor to replace its ageing narrow-body fleet with new fuel efficient planes.

The carrier plans to replace 19 A320 planes.

Under the 14-plane deal with new engine option (NEO), a Kuwaiti aircraft leasing firm would deliver A320s between April 2017 and 31 March 2018. These planes, which are to be inducted in fiscal 2018, are being leased for a ten-year period.

Earlier this year, Air India entered into a deal with a Chinese firm for five sharklets-equipped A320 (current engine option) aircraft.

For these five planes, it has tied up with independent Chinese lessor China Aircraft Leasing Company. Four of them have already been inducted into Air India fleet.

PTI