Indian Airlines plans to lease ATRs

Indian Airlines is examining a proposal to lease regional jets and turbo-propelled aircraft like ATRs as a part of the carrier's strategy to service routes with lower traffic.

The ATR 42-320 type aircraft, which is being considered, will service routes other than the north Eastern region, where Indian Airlines has already deployed such aircraft, a senior civil aviation ministry official said.

The 70-seater regional jets are being considered for low density medium range domestic routes.

Indian Airlines will induct two more Airbus A 320s into its fleet in the next three months. Besides, it will also lease eleven Airbus A 319 to replace the Boeing 737-200 in its fleet. The A 319's will be inducted into service from November 2005.

The board of Indian Airlines has also recently approved induction of nine wide-bodied aircraft to service long haul sectors and international routes.

Sources also said that Indian Airlines will depend on leasing of aircraft to boost its fleet as a result of the pending purchase of 43 new aircraft.

It is pointed out that the fleet acquisition plan of the carrier will take more time to execute as the delivery schedule of acquired aircraft will be a staggered one.

In its present fleet of 65 aircraft, 14 Airbus A 320 and 4 ATR 42 320 aircraft are on lease. It was also pointed out that the airline needs newer aircraft to bring down the cost of operation and to meet competition from private carriers.

Meanwhile, the Rs 10,000 crore fleet acquisition plan of Indian Airlines is on a fast tract. Sources said the proposal will be put forward to the public investment board for its approval and clearance.

The board of Indian Airlines had recently cleared the proposal to acquire the 43 aircraft.

Government estimates show that Indian Airlines will require an investment of Rs 15,000 crore in the next five years, which will go towards funding the carrier's fleet acquisition plans as well as to raise its equity base to Rs 1,000 crore from the present Rs 107.4 crore.