IA to soar to new heights on Airbus fleet

Carrier's first new aircraft in 17 years comes next year.

Finally, the state-owned Indian Airlines (IA) can look forward to having its first new aircraft in 17 years. The first of the 43 planes it is buying from Airbus Industrie will start joining its fleet from the second half of next year. Subsequently, one aircraft every month will be joining the carrier.

The renewal of the fleet "" all the existing 43 planes in the airline's fleet are expected to be phased out "" is expected to bring down the company's cost of operations by 10 per cent. It is also expected to substantially improve the profitability of the company. The savings will come mainly on account of better utilisation and efficiency of the new aircraft.

Private airlines, including the ones recently launched, have managed to attract customers with their shiny new aircraft, which also translate into a perception of higher reliability.

The new planes, which can fly longer hours and entail lower maintenance cost, have allowed private carriers 30 per cent higher operational efficiency. The new planes also have a lesser breakdown time, when they need to be grounded and repaired. The new fleet will help IA fight competition from the private carriers, which now have over 65 per cent market share.

"IA's savings in the long run will be substantially higher than the cost of acquisition," said a civil aviation ministry official.But, all that is for the future. For now, the company can soar, owing to the relief over the clearance of the deal, a good three years after its board had first okayed it.

At that time, Indian Airlines was the market leader with over 50 per cent market share. Now, with the average age of its fleet at 13 years, IA has lost the lead to Jet Airways. The new planes will bring down the age of the fleet to under three years. With the new fleet, IA will be at par with its competitors. It can operate in more routes with the same aircraft and fly longer hours.

Another advantage is that with similar aircraft type "" it will be an all-Airbus fleet, as opposed to the existing mix of Airbus and Boeing planes "" the maintenance cost of Indian Airlines will also come down as it can maintain all the aircraft in one facility. Pilots can also be used across the fleet without any additional training.

The new aircraft will also help Indian Airlines take care of the projected annual traffic increase of about 15 per cent. This is mainly because the airline can now deploy more aircraft on busier routes and operate multiple services.

IA's reals are bracing up for more competition. "The new aircraft come at a time when the company needs to upgrade its product. It will allow the carrier to operate in a much better way," said an executive with a private carrier.

A government official pointed out that the new planes will help Indian Airlines reduce the leasing cost of its fleet considerably, which has a huge bearing on its costs.

FLYING HIGH

The renewal of the fleet is expected to bring down the company's cost of operations by 10 per cent

It will also help IA fight competition from the private carriers

The aircraft will improve the profitability of the company because of better utilisation and efficiency