Patel’s lease plan fails to take off

Civil Aviation Minister Praful Patel’s plan to replace Alliance Air’s ageing Boeing 737 fleet with Airbus A-319s by June 2005 has ...

Civil Aviation Minister Praful Patel’s plan to replace Alliance Air’s ageing Boeing 737 fleet with Airbus A-319s by June 2005 has run into rough weather with bidders failing to meet the terms of the tender to lease the aircraft. Indian Airlines now plans to float a fresh tender, extending the lease period from three to five years. However, Patel is yet to give his word on the matter.

The empowered committee in charge, comprising senior ministry and airline officials, was in for a rude shock when it met to examine the bids on June 22. Only two offers were apparently made and neither met the exact terms and conditions laid out in the global tender floated by the airline for dry leasing five Airbus A-319 aircraft in the first phase.

One party made an offer to lease only a single-used aircraft while the tender called for a minimum of three aircraft. The other party agreed to lease out five aircraft but said it could not do so before November 2005 and that too, for a minimum lease period of five years. The tender mentioned a lease period of three years.

Story continues below this ad

There were no other official bids but sources said a few leasing companies have approached through informal channels to provide the aircraft before June next year if the lease period is increased to five years. Sources said Patel would now have to weigh the option of either expediting the acquisition process or go ahead with the empowered panel’s decision to re-tender with amended terms and conditions.

The Indian Airlines board had planned to replace the Alliance Air fleet as early as 2002. It proposed to acquire 19 Airbus A-319s as part of a Rs 10,000-crore acquisition plan for 43 new aircraft.

However, given the delay in acquisition and its failure to place the plan before the Public Investment Board for approval, the Indian Airlines board decided to lease 11 Airbus A-319s in two phases to upgrade Alliance Air. The ‘‘in principle’’ approval was given by the board on March 24 after consultation with the Ministry.

Leopard’s growl and a lie: How a blood-stained rock and a forensic report exposed a murder

Cities2 min ago

In December 2024, a woman was found dead in a sugarcane field in Maharashtra, sparking public outrage over the human-wildlife conflict. The initial statement of a leopard attack was later revealed to be a planned murder by the victim's husband's nephew and a laborer. They were arrested and a charge sheet was filed against them.

View all shorts

Live Blog

PHOTOS