The Hindu Business Line : IA fleet price issue referred to GoM

INDIAN Airlines (IA) could be a month away from placing order for its Rs 10,000-crore 43-Airbus aircraft acquisition proposal. The Cabinet Committee on Economic Affairs (CCEA) on Thursday decided to refer the matter of the price that IA would pay for the proposal to an empowered Group of Ministers (e-GoM).

Official sources said that the e-GoM, which is expected to complete its work in a month, is to hold a final round of price negotiations with the European aircraft manufacturer. The composition of the e-GoM is to be decided by the Prime Minister, Dr Manmohan Singh.

While the Airline board cleared the proposal in March 2002, the Public Investment Board (PIB) gave its nod in November last year. The move to set up another committee to consider the price at which IA would acquire the 43 Airbus aircraft was mooted after some Parliamentarians raised questions as to whether the European aircraft manufacturer had quoted a lower price for a similar deal to an airline in South-East Asia. The airline plans to purchase the Airbus A-320 family of aircraft including the Airbus A-320, A-321 and A-319.

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