The Hindu Business Line : Air India panel clears lease of 3 Boeing 777s

LATE Tuesday night, Air India's empowered committee cleared a proposal to lease three Boeing 777-200 aircraft, a move which should help AI launch more flights to London and the US.

Confirming the development, official sources told Business Line that the empowered committee was examining the offers for leasing two or three varieties of aircraft before it short-listed the Boeing as the most suitable. The empowered committee had been set up by the airlines board to examine the issue of which aircraft AI should lease.

Initially, the airline received offers for leasing both the Airbus A-330s and Boeing 777s . However, the airline was later informed that the competing aircraft were no longer available as the ones that were to be leased had been sold, sources said.

"The three Boeing 777 aircraft which are to be leased will arrive this winter in a phased manner ending March next year. The airline will look at launching more flights to London with these aircraft. In addition, the airline will also examine the option of launching more flights to the United States with the aircraft being leased," a senior AI official said here.

Meanwhile, even as the airline firms up the lease of the three Boeing 777s , it has also decided to re-enter the market to lease more aircraft. Officials said that the airline would look to lease from a range of aircraft including the Airbus A-330, Airbus A-340, Boeing 777 and Boeing 747-400 combi. The decision to re-tender has been taken as the offers being currently evaluated did not meet the airlines various requirements.

"While the Boeing 777 and Airbus A-330 aircraft are on offer only during the second half of 2005 and 2006, the Airbus A-340-300 that the airline requires were not available for the period that is being considered. So we will again have to put out fresh tenders for some aircraft," a senior AI official said.

The airline is also working at firming up its proposal for acquiring new aircraft and should be sending the report to the Government next month, officials said.