Air India to double fleet by leasing 100 planes
The government has decided that Air India will almost double its fleet by adding over 100 aircraft, but without burdening the exchequer with a mammoth debt burden like last time. The airline will grow by leasing aircraft instead of purchasing them — the model adopted by Congress-led UPA.
“AI will induct 100 more aircraft in next four years. We have decided not to seek any additional budgetary support except for the turnaround plan approved for the airline earlier. The airline will lease aircraft and has the resources to make the payment that needs to be made for leasing,” aviation secretary R N Choubey said.
A financial support of Rs 30,231 crore was approved for AI in 2012. Of which, it has received Rs 22,280 crore till March 2016 and another Rs 1,713 crore was to be given in FY16-17. The Modi government has decided that the airline’s growth plan will not lead to any enhancement in this equity support. AI has 118 planes, of which 41 are wide-body used on long-haul and a few domestic routes, 66 narrow-body are used on domestic and nearby international routes, and 11 are regional jets. 77 planes are owned by the airline, 22 were sold and leased back and 19 are leased.
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