Air-India signs deal with Boeing for 68 planes

Largest-ever aircraft acquisition deal in India

BY A CORRESPONDENT
12th January 2006

Air-India today signed its biggest-ever plane purchase order with Boeing, signing up for 68 aircraft to augment its fleet. The deal, which costs Air-India about Rs 35,000 crore (Rs 350 million) was signed between Air-India chairman V Thulasidas and Boeing CEO Alan Mulally in Mumbai.

Despite the aviation boom in India, Air India has not expanded its fleet in the last one decade.

Today's mega-order includes 27 787 Dreamliners, 15 777-300ERs and eight 777-200LRs. The fleet expansion will benefit both Air India as well as its low-cost airline subsidiary Air India Express. Boeing took out fullpage advertisements in the media to celebrate the deal and congratulate Air India. Delivery of planes will start in November.

The empowered group of ministers had last month cleared the mega-deal, paving the way for signing the deal.

India's civil aviation minister Praful Patel said that Boeing will invest &100 million in India for an aircraft repair & maintenance unit, and $75 million for pilot training.

This is the largest plane purchase deal in Indian civil aviation history.

The Dreamliners will be flying in the New Delhi-New York and Mumbai-San Francisco routes. Also, with the new aircraft, Air India plans to start flights to Europe and the US from Chennai, Bangalore and Hyderabad.