Air India dreams of revival
Air India will go ahead with a purchase order for 27 Dreamliner 787 aircraft from Boeing despite its debts and doubts about its ability to repay the loans needed for the aircraft.
The Air India board, meeting this week, agreed that the 27 Dreamliners are essential to expand operations and swing the airline back into profitability.
The purchase still needs to be sanctioned by government ministers.
The Economic Times of India said the national carrier’s fortunes have plummeted in recent years, thanks to rising fuel prices, the global slowdown and a hastily-arranged, ill-advised merger with Indian Airlines.
Its brand image has been badly dented by a series of mishaps both in the air and on the ground, resulting in heavy losses, the newspaper reported.
A number of people, including the civil aviation minister, Vyalar Ravi, have raised doubts about the airline’s ability to pay for the Dreamliner purchase.
Apart from Air India, Boeing also has an order from Jet Airways for 10 Dreamliners. Boeing’s order book for the B-787 worldwide currently stands at nearly 900 aircraft.
Ian Jarrett
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