A-I Charters plans to buy 18 Boeing aircraft

Air-India Charters, the low cost carrier owned by Air-India, has drawn up plans to buy 18 Boeing 737-800 aircraft at a cost of Rs 4951.60 crore.

According to government sources, the carrier's fleet acquisition plan, which was cleared by the Air-India board last month, is currently under government's consideration. Till the government gives its nod, the low cost carrier will have to lease aircraft to meet its requirements.

Officials in the Union civil aviation ministry said the proposal will be tabled before the Public Investment Board (PIB) soon.

"The proposal is currently being examined by the government. It will be put up with the PIB soon," said the official.

The fleet plan of the budget carrier was reviewed recently keeping in mind the low cost and low fare model planned by it. The new plan is expected to cover the operations on the existing routes as well as new routes for Air India Express.

Besides, the government also asked the carrier to examine if its proposal for the purchase of short-range aircraft is justified on a stand-alone basis.

The Union civil aviation ministry also pointed out that the proposal to acquire Boeing 737-800 aircraft had been included in AI's fleet acquisition proposal much before it embarked on a plan to launch a low cost carrier.

Air India Express is expected to break-even in the immediate future. As per the plans of the carrier, on most of the routes to West Asia, AI will withdraw its fleet and replace it with Air India Express.

Besides, the government is also considering to allow Air India Express to operate services in certain domestic sectors.

Air India Express, with a fleet of three leased Boeing 737-800, operates about 35 flights a week. These flights are operated to Dubai, Abu Dhabi, Muscat and Salalah from Kochi, Kozhikode, Thiruvananthapuram, Mumbai and Dubai.

Each aircraft will have 181 seats in a single class configuration of economy class and will be operated on a quick turn-around time basis.