Air India decides on Boeing to supply aircraft

Airline Industry Information, April 27, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Air India has decided to buy 50 Boeing aircraft in an agreement valued at USD6.8bn.

Air India has said that its board has approved acquiring eight 777-200 aircraft, 15 of the 777-300 aircraft and 27 of the new 787, the Dreamliner. The decision however requires approval from the government and it is not known when that may be given.

Jeetendra Bhargava, a spokesman for the airline, said the decision was made after Air India had looked at proposals from both Boeing and Airbus, The Associated Press reported.

While the US Transportation Secretary Norman Mineta visited India last week, making a statement that relations between the United States and India would benefit if Boeing gets the order, the French Transportation Minister Gilles de Robien was reportedly in the country early this week for talks with India's aviation minister Praful Patel.

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