Boeing, Airbus in the race on Air India plane deal
AFP, Bombay
The board of state-run Air India is meeting Tuesday to decide the purchase of 50 long-range aircraft amid intense lobbying by US giant Boeing and Europe's Airbus Industrie for the six billion dollar deal. After more than a year of hectic negotiations with the two aircraft makers, the board is likely to decide on the supplier Tuesday. "The board is meeting Tuesday at around 3:30 pm (1000 GMT) to discuss the plane purchase plan and the sale of government shares in the company," Air India spokesman Jitendra Bhargav said. The airline wants to buy a mix of planes and has short-listed the Airbus 340-500 or Boeing 777-200 LR, the 350-seat Airbus 340-600 or Boeing 777-300 ER, and the 250-seat Airbus 330-200 or Boeing's new 787 Dreamliner. The aircraft are scheduled to be delivered over a period of 10 years starting 2006, during which Air India plans to increase seat capacity by 12 percent annually. Air India, which is currently negotiating with banks to finance the purchase, has been the focus of intense lobbying from Boeing and Airbus for the order.
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