The Hindu : National : Give us fair, equal opportunity, says Airbus

Online edition of India's National Newspaper
Thursday, Apr 28, 2005

National

National

Give us fair, equal opportunity, says Airbus

Special Correspondent

We were never allowed to present facts before AI board, complains official

NEW DELHI: A day after the Air India Board approved a plan to purchase 50 aircraft from the U.S. manufacturer, Boeing, in a deal estimated to be worth $ 6 billion, Airbus Industrie cried foul, demanding that the process be reviewed and bids examined afresh.

Talking to reporters here on Wednesday, Nigel Harwood, vice-president (sales) for India and South Asia, demanded that Air India give Airbus a ``fair and equal'' opportunity to present its case.

``The procedure lacked transparency. We were never allowed to present facts before the Air India board. The Civil Aviation Minister, Praful Patel, had promised total transparency in the acquisition process but we are shocked that we were not even considered. If this is how Air India plans to purchase planes, why should we even enter the bids?''

`Astonished'

Mr. Harwood demanded that the entire documentation of Air India bids be presented before the Central Vigilance Commission for an impartial and fair assessment. ``We are not disappointed but we are astonished by the fact that Air India chose to ignore Airbus completely without even giving us a chance to offer our views. This is a major deal for us and Air India is a very valued and prestigious airline for us.''

He claimed that tender norms were skewed in favour of Boeing and the Air India Chairman did not even reply to a number of Airbus' letters on the company's passenger planes and economic advantages for Air India.

The main objection by Airbus is that its superjumbo A-380, which completed its test flight safely on Wednesday, was not considered. Mr. Harwood said Boeing's B-787 ``Dreamliner'' would be available for delivery not before 2009 and its seat configuration of nine abreast in the economy class gave Boeing an unfair advantage.

He had written to Air India saying eight abreast in the economy class was the accepted norm worldwide and that the nine abreast seating arrangement was preferred only by charter operators. B-787 was in direct competition with A-350, which would be available by 2010.

Mr. Harwood said A-330 and A-340 were equipped with the most modern, fuel-efficient engines and would offer better efficiency and lower operating costs to Air India. Airbus was in a comfortable position to deliver the planes in 2006. Last year, it delivered 320 commercial passenger planes and the European consortium planned to cross that figure this year, he said.

No change in norms

Air India officials cited their November 24, 2004 tender norms, maintaining that the norms for the fleet acquisition plan were not changed. The tender specified the types of aircraft Air India proposed to purchase. These included A-340-500, B-777-200 LR, A340-600 and B-777-300 ER, A-330-200 and B-7E7-8. The plan aimed at covering the period up to 2012-13, providing for an increase in fleet size from 34 to 74.

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