The Hindu : National : Airbus cannot question Air India decision: Boeing

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Thursday, May 05, 2005

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Airbus cannot question Air India decision: Boeing

Special Correspondent

NEW DELHI: Boeing, which bagged the Air India order for 50 passenger planes, has joined issue with its European archrival, Airbus Industrie, saying it was wrong of Airbus Industrie to ask for a CVC probe into Air India Board's decision to opt for Boeing aircraft.

"It is absolutely incredible that Airbus is questioning Air India's evaluation. There is no doubt about Air India's evaluation process and tender norms being very thorough and strict. It can stand any scrutiny," Boeing's Senior Vice President (Sales), Dinesh Keskar, told reporters here on Wednesday. The CVC issue was "an internal matter of the government and the airline, who together can decide on this."

Citing the instance of the Indian Airlines deal for 43 Airbus aircraft, Mr. Keskar said Boeing had not cried foul at that time and never asked for a CVC probe. "We waited for some time and when we had innovations like the winglets and other technology, we wrote to Indian Airlines that it stood to gain by purchasing our planes in the changed market scenario. But we did not get a reply. It is up to the airlines to take a decision regarding their fleet acquisition plan."

On the Air India Board's decision to acquire 50 Boeing aircraft, he compared the Boeing 777-200 (Long Range), 777-300 (Extended Range) and the yet-to-be launched 787-8 with their competitors — A-340-500 and A-340-600 — claiming the Boeing fleet would enable AI to earn $180 million worth of operating profits a year, depending on the routes AI planned to operate. He claimed that Boeing planes were far better products.

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