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AI places $11 b order with Boeing

Special Correspondent

The new purchases will support the airline's expansion plans

MUMBAI: Air India on Wednesday signed the largest ever single commercial order in the aviation history of India with US-based Boeing Commercial Airplanes for purchase of 68 airplanes. This move follows the recent approval of the order from the Union Government. The aircraft, valued at more than $11 billion at list prices, are scheduled for delivery beginning in November.

The agreement was signed between Air India Chairman V. Thulasidas and President and CEO of Boeing Commercial Airplanes Alan Mulally at the Air India office here in the presence of Praful Patel, Union Aviation Minister.

The order covers 23 Boeing 777s, including eight 777-200LR (Longer Range) Worldliners and 15 777-300ERs (Extended Range) and 27 Boeing 787-8 Dreamliners. Air India Express, a wholly-owned subsidiary of Air-India, will receive 18 Next-Generation 737-800s.

Air India now has a fleet of 41 aircraft. The new purchases will support the airline's expansion plans. The 777s will replace the airline's current fleet of 747-200s airplanes while the 787-8 Dreamliner will replace its aging A310 fleet.

After signing the deal Mr. Thulasidas at a press conference said the acquisition of these aircraft would mark a new chapter in the airline's history, as it is the largest ever purchase in the annals of the Indian aviation industry. He said with the induction of new planes, the airline would be flying direct routes from Bangalore, Chennai and Hyderabad to Europe and the U.S.

"The positive economics of the new airplanes will offer Air India operational cost savings and the flexibility to serve new, ultra-long-range non-stop routes that our passengers demand such as Delhi-New York and Mumbai-San Francisco,'' said Mr. Thulasidas, adding that, "the combination of the 777 and 787, matched with the reliability and low operating costs of the 737s, will provide a competitive advantage for Air India and Air India Express.''

"Air India will ensure that these new aircraft have the latest passenger amenities on board so that, with the induction of these aircraft, it can emerge as one of the leading global carriers," Mr. Thulasidas added.

Additionally, Boeing has announced that it is committed to investing in a regional maintenance, repair and overhaul (MRO) base, and a pilot training facility in India. Details of this effort are to be finalised over the coming months.

Calling India one of the largest civil aviation markets in the world, Mr. Patel said, "China and India will drive the growth in this sector in the coming years.'' "In India we are expecting a 25 per cent growth in the next ten years,'' said Mr. Patel, adding that, with this expectation, "massive infusion of aircraft and massive infusion of equity'' were necessary to compete with the best in the world.

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