Airbus & IA rush to deliver plane deal in time for Chirac visit

Most details of Indian Airlines’ $2.2 billion purchase of 43 Airbus aircraft were worked out by December but there were some differences over technical specifications on aircraft interiors. Plus legal clauses in the agreement still had to be finalised. The delivery of the first aircraft will be in October and on an average one aircraft will be delivered every month for over the next three years.

Airbus has done well in India having bagged orders for 263 aircraft worth $16.5 billion (including spares) from various airlines in the country. Further, there are plans for it to set up a maintenance, repair and overhaul facility in India to service Airbus aircraft in the region.

Like with the US, India is keen on getting French expertise for setting up a pilot training school and a DGCA training academy. These will be discussed during Chirac’s visit.

On cooperation in civilian nuclear energy, the spokesperson for the Ministry of External Affairs today said that the two countries would sign a declaration. While this will not be legally binding, it will be an elaboration of the areas in which India and France will seek cooperation. This includes French cooperation in building more reactors in India.

However, the text of the document was still in the works with the key element being the reference to international guidelines like those framed by the Nuclear Suppliers Group and IAEA safeguards. The document will lay the foundation for the two countries to enter into a formal agreement once India has obtained necessary exemptions.

Besides this, the two sides will sign a framework agreement for Defence cooperation. This will streamline interactions between the countries and take care of French concern over India’s red tape on finalising Defence deals.

France has been in the forefront of supporting India on other key issues like co-sponsoring the G-4 resolution for expansion of the UN Security Council.

Both sides will discuss scope for further cooperation in international bodies, particularly when the NSG takes up India’s case.

Besides this, India and France will sign an agreement to jointly build a satellite for Europe’s satellite telecommunication project EUTELSAT. An agreement on tourism will also be signed during the visit.