The Hindu : National : Parameters changed, says Airbus Industrie

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Wednesday, Apr 27, 2005

National

National

Parameters changed, says Airbus Industrie

Special Correspondent

Civil Aviation Ministry has no role in aircraft acquisition plans: Praful Patel

NEW DELHI: The decision by Air India Board to go in for the acquisition of 50 Boeing passenger airplanes at an estimated cost of Rs. 30,000 crores comes at a time when the State-owned international carrier is on a major expansion of its network. The order, on the cards in the past few days, has already made the Europe-based Airbus Industrie, a keen rival of Boeing company, allege that Boeing was being favoured by changing some parameters of the acquisition plans.

The complaint of Airbus Industrie, which has Indian Airlines order for the purchase of 43 aircraft at an estimated cost of Rs. 10,000 crores, was given to the Civil Aviation Ministry, fearing that there was a distinct possibility of an "unfair evaluation" by the Air India Board.

Airbus apprehensions came in the wake of reported U.S. pressure on the Indian Government for swinging the order in favour of Boeing.

The issue, which has been alive since the days of the National Democratic Alliance (NDA) Government, came to the fore during the recent visit of the U.S. Secretary of State, Condoleeza Rice, to Delhi.

It also figured during the discussions between the U.S. Transportation Secretary, Norman Mineta, and the Minister of State for Civil Aviation, Praful Patel, when in mid-April they signed the India-U.S. "Open Skies'' agreement.

The French Transportation Minister, Gilles de Rubien, and a high-power business delegation from France, consisting of Airbus Industrie officials, met Mr. Praful Patel on Monday.

Though Mr. Patel has maintained that the Ministry has no role in the aircraft acquisition plans of Indian Airlines and Air India, the Government has seen a keen tussle between Boeing and Airbus Industrie to grab a share in the Indian skies by securing orders from the two State-owned carriers.

Air India's Board during the NDA regime had recommended the purchase of 28 airplanes, including Airbus A-340-300 and Boeing 737-800. But the rapidly changing civil aviation scenario saw the policy of "Open Skies" being pursued vigorously, at least in respect of the U.K. and the U.S.; the permission given to private Indian carriers to fly abroad; and the launch of low-cost Air India Express for connections to the Gulf region. In the changed scenario, the techno-economic expert committee of Air India Board took a re-look at its purchase plans as the international carrier was eyeing the U.S., Australia and Canada markets. In the changed scenario when Airbus has unveiled a superjumbo passenger plane A-380, Boeing's strategy was to go in for smaller versions of planes that could fly non-stop ultra long range like Mumbai to any destination in the U.S. Long delays, mainly on account of procedural details and wrangles in the Government, often frustrate the aircraft manufacturers — Airbus and Boeing.

The case of Indian Airlines, sources pointed out, for the purchase of 43 Airbus family aircraft offered one such example. Awaiting the final clearance by the Union Cabinet, the IA proposal has been cleared by the Public Investment Board. The file, sources said, was still lying on the desk of the Civil Aviation Minister who wants further comments on it.

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