Indian Airlines to lease eleven new aircrafts
The Board of Indian Airlines has approved the lease of eleven new aircrafts. This would include five Airbus A-320 aircrafts and six 70 seater regional jets. The aircrafts shall be delivered over the next six months. The Indian Airlines is planning to promote its subsidiary Alliance Air as low cost air carrier to compete with the new low cost private players. The regional jets will be operated by the Alliance Air on a cost competitive model. The airline is also planning to outsource the maintenance work for the new regional jets to reduce its fixed wages. Such steps would be necessary to bring about a cost competitive model.
Earlier in February 2006, the airline had placed an order to Airbus Industries to buy 43 aircrafts including 19 A-319s, 4 A-320s and 20 A-321s. Out of which one aircraft has been delivered recently. Presently the airline has a fleet of 74 aircrafts.
Indian Airlines is getting aggressive in expansion. It is adding more aircrafts to its fleet to stay in competition with the private players.