The Hindu Business Line : AI enters market to dry lease 3 aircraft

Air India, which is now in the market to dry-lease three medium capacity long-range aircraft, is also examining the possibility of inducting these aircraft through the wet lease route.

While in a dry lease the airline merely inducts the aircraft into its fleet, a wet lease includes taking the aircraft with the crew. AI last wet leased aircraft in the mid-1990s and since has been looking at the dry lease option to meet its needs.

"The airline will look at the wet leasing option in case the aircraft are not available on dry lease. AI will then get the aircraft through the ACMI route that includes the cockpit crew, maintenance and insurance," said a senior airline official. The cabin crew on the wet leased aircraft will, however, be that of AI.

The induction of aircraft through the wet lease route will also help the airline get over the pilot shortages being faced by it.

The airline plans to lease either three Boeing 747-400 or Boeing 777-200 Extended Range (ER) and needs the aircraft to maintain "schedule integrity" during the forthcoming winter.

"The current leased aircraft in the fleet will soon be going back after the expiry of their term, and, therefore, more aircraft are required," said a senior airline official.

The airline plans to induct the aircraft, which will seat 300 passengers in a three-class configuration, by September.

Stop-gap arrangement

The induction of the leased aircraft will be a stop-gap arrangement as the airline has already signed an agreement with Boeing to purchase of 68 brand new aircraft, including 27 Boeing 787, 8 B 777-200 Long Range and 15 Boeing 777-300 Extended Range aircraft, at an estimated cost of Rs 38,000 crore. Deliveries are scheduled to begin in November and continue till 2012.