IA to sign pact for 43 Airbus aircraft
By agencies   |   Friday, 16 December 2005, 20:30 IST
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NEW DELHI: At last after waiting for four years to get a new fleet of aircrafts, finally Indian Airlines is acquiring new flights. The airline is all set to ink a letter of intent (LI) or a term sheet with the European aircraft manufacturer, Airbus Industries for the purchase of 43 aircraft. Refusing to give more details on this issue, the company sources said, the LI will spell out the intention of Indians to do business with the aircraft manufacturer and pave the way for a purchase contract to be firmed up and signed so that the process of purchase of the aircraft can also begin. The delivery dates and other terms & conditions that have been worked out between IA and Airbus will be specified in the LI. The decision of the airline to go ahead with the purchase has already been communicated to the Government and the airline board, sources said. The airline board had, cleared the proposal for acquiring 19-Airbus A-319 aircraft, four A-320s and 20 A-321s. But it was only in September this year that the Prime Minister, Manmohan Singh, announced that the Government had cleared the proposal for acquiring 43 Airbus aircraft in a deal valued at more than $2 billion. The delivery of the aircraft is scheduled to start in September 2006 and the last of the planes will arrive by March 2010.