9V-SVC

INDIAN AIRLINES WANTS AIRBUS PLANES WORTH US$2.25bn

By Chris Jasper

New Delhi, March 27 (Bloomberg) -- Indian Airlines, the country's No.
1 domestic carrier, said it wants to buy 43 Airbus narrow-body planes
for $2.25 billion after evaluating bids from the European planemaker
and U.S. rival Boeing.

The airline's board wants to buy a mix of Airbus A320-series aircraft
for delivery between the 2004 and 2008 fiscal years, said Ashok
Sharma, a spokesman for the New Delhi-based airline.

"The board took the decision today after receiving a report from our
technical-economic evaluation committee," he said. "It's now for the
government to decide the issue."

State-owned Indian Airlines is revamping its fleet after bidders
failed to buy the airline last year. The government, which owns both
the domestic carrier and long-haul airline Air India, gave the go-
ahead for aircraft purchases last November, overturning restrictions
in place since 1994.

The board's recommendation on the Airbus order will now go to India's
Ministry of Civil Aviation for approval, Sharma said. He couldn't say
when the process would be completed.

"This is great news for Airbus and the A320 family," said an Airbus
spokeswoman. The Toulouse, France-based company, the world's No. 2
planemaker after Boeing, won 274 new orders last year. Airbus
delivered 325 planes last year and forecasts 300 deliveries for this
year.

Catalogue Price

The price quoted by Indian Airlines for the planes -- an average $52
million -- was probably based on the catalogue value, the Airbus
spokeswoman said. The advertised cost of A320-series planes ranges
between $48 million and $72 million.

Airlines have been paying less than advertised rates since the Sept.
11 attacks as demand for new planes slowed.

Indian Airlines wants to order Airbus A319s, A320s and A321s, seating
from 122 to 172 people, Sharma said. All the planes would be powered
by engines from CFM International, a partnership between General
Electric, the biggest enginemaker, and state-owned Snecma of France.

The new planes would be used to replace Indian Airlines' 11 aging 250-
seat Airbus A300 wide-body planes, and to allow for network
expansion, the Airbus spokeswoman said. The carrier already operates
some A320s, she said. Using more of the same type of plane reduces
operating costs.


I am not surprised with this deal especially they are already operating A320s .

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Let's welcome Boeing newest product, the Boeing 7E7.

Cadavre on a stick

Too bad they don't realize they're going with the inferior product.
Hopefully the Civil Aviation Ministry will over turn the decision made by the technical committee.

AV8TOR

I am not surprised by this order either considering how many concessions and generous discounts Airbus consistently gives.

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Wingman

Well, since Indian Airlines and Air India are virtually one in the same, I guess we can conclude that Air India will be ordering Airbus wide-bodies within a short period of time.

As I stated with the South African Airlines decision to go with an all-Airbus fleet, we can begin counting the days that Air India and Indian Airlines have left to fly.

And please do not give me any crap about how this was a "geo-political" decision. Jet Airways is flying an all-Boeing fleet and is kicking Indian Airlines in the ***.

In fact, those airlines that have a good job weathering through this economic storm are flying an all-Boeing fleet, such as Southwest, WestJet, Ryanair, Virgin Blue/Express and easyJet.

There is an article in the February 25th edition of Business Week magazine (pg.16) that talks about the fact that Airbus is having trouble selling aircraft to these and other no-frills carriers.

Indian Airlines was just looking for a cheap price, not suitability.

CAL 757-300

I wonder if these will come with the four-wheeled main landing gears like their current A320s? Picture an A319 with a four-wheel main bogey. That would be a sweet thing to see. And an A321 with four wheels? Can you say anemic 757?!

Ming

Geo-political consideration is only a factor not a decision determination. Geo-political consideration must apply on a case-by-case basis. I fail to see the relevence of Air India vs. Jet Air in Geo-Political consideration in this case.

As for airlines failed/in trouble operating with Boeing fleet exclusively: National Airlines/757, Sun Country, TWA..... However, I woul not attribute their failures in the fleet, since it is the management who screwed it up.

smoothjazz

How come so many airlines ordering Airbuses?

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Wingman

Ming,

The point that I was trying to make with regard to Jet Airways is the fact that the carrier went with an aircraft type that would work well in its system. I do not believe that this carrier made its decision based on geo-political considerations.

With regard to the carriers you listed above who have deceased or are currently dealing with financial uncertainty and who happened to operate an all-Boeing fleet, I would like to point out the following:

TWA began to experience financial trouble while operating a mix of Boeing, Lockheed and McDonnell-Douglas aircraft types.

Sun Country happened to fall victim to the circumstances following the 9/11 attacks and was not large enough to sustain itself through this crisis.

National Airlines is operating from a city that is already saturated with low-cost carriers that have assisted in suppressing ticket prices and has resulted in low yields.

I do respect and appreciate your observations.

Chansen

Sun Country has since restarted under the guidelines of Bankruptcy protection.

Travelin' Man

How could anyone want an Airbus over a Boeing. Face it, Airbus paid some folks off. What a crock. Glad I don't live in India.

continental sat

Just a other airline making a big mistake boeing all the way!

AV8TOR

Yeah, it is very sad to see the orders for Airbus aircraft come in and the airlines using them bow out! It just goes to show you what happens when you go cheap.

Boeing still is and always will be #1!

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tdh8192

Simple. It's just a matter of dollars, or euros, or whatever currency you want to use. When an airline wants to fly a passenger from here to there for the least amount of money, Airbus beats Boeing hands down. You have to remember the world is run by bean-counters - and the only thing that truly matters is the bottom line.

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Ming

Wingman:

The examples you posted support my position that it takes a smart management with good common business sense to make an airlines a success. The brand of aircraft is not the only factor for success.