Announcement

Collapse
No announcement yet.

e-GoM to announce IA's price for Airbus acquisition today

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • e-GoM to announce IA's price for Airbus acquisition today

    New Delhi , Sept. 6

    A FINAL decision on the price that Indian Airlines will pay for acquiring 43 Airbus aircraft is expected on Wednesday.

    The four-member empowered Group of Ministers, which had extensive discussions with the European aircraft manufacturer Airbus Industrie and engine manufacturer CFM, here on Tuesday, is likely to announce a final decision on Wednesday, the Minister of Civil Aviation, Mr Praful Patel, said after the meeting. "We have concluded the discussions with the aircraft and engine manufacturers and there will be no further rounds of talks with them. We will have internal discussions and a final decision is probably expected by tomorrow," Mr Patel said.

    The e-GoM had been set up to have one final round of price negotiations with the aircraft and engine manufacturer to try and further reduce the price that IA will have to pay for the aircraft. The cost of the acquisition is estimated at Rs 10,089 crore.

    The e-GoM is headed by the Finance Minister, Mr P. Chidambaram, and includes the Minister for Law, Mr H.R. Bhardwaj; the Minister for Programme Implementation, Mr Oscar Fernandes, and Mr Patel.

    Apart from the Senior Vice-President, Dr Kiran Rao, the Airbus delegation included senior officials from the finance, contract, and customer services departments.

    Late last month, the Cabinet Committee on Economic Affairs decided to refer to an e-GoM to decide on the final price for aircraft acquisition. The move to set up another committee to consider the acquisition price was mooted after some Parliamentarians raised questions as to whether the European aircraft manufacturer had quoted a lower price for a similar deal to an airline in South-East Asia.

    The IA board approved a proposal to acquire the aircraft in March 2002 while the proposal was given the nod by the Public Investment Board in November last year.

    The airline plans to acquire the Airbus A-320 family of aircraft including the Airbus A-321, A-320 and A-319.
    Wild Wild Web sigpic

  • #2
    Too many aircrafts being procured why dsnt india sign a deal with airbus / boeing to open a plant in india for these productions.

    Comment


    • #3
      Originally posted by ajaybhutani
      Too many aircrafts being procured why dsnt india sign a deal with airbus / boeing to open a plant in india for these productions.
      hal will be manufacturing considerable portion of these aircrafts in india(outsourcing of work to hal is part of the offset deal for these aircrafts),
      hal already manufactures doors,galley equipments,lavatory modules etc for both boeing and airbus aircrafts,other indian companies involved with the boeing and the airbus are wipro,tcs and a private indian company which is designing the interiors of the airbus a380.
      Last edited by aaaditya; 07 Sep 05,, 14:03.

      Comment


      • #4
        If it is cheaper to produce it abroad and outsource some parts to HAl, then that is what should happen, free trade can more efficiently allocate resources and make India and Europe better off. India does not need to produce everything in house, India only needs to concentrate in goods in which it has a comparative advantage.

        Comment


        • #5
          Interestingly India is a beautiful future case for free trade. The EU for example has a trade surplus with India, around 60% of Indian imports come from consumer goods and this is the fastest growing segment of the Indian market. In 20 years India will certainly become an important destination and nation as many countries' peoples will have their jobs depending on the Indian consumer.

          The Chinese have just started to reach this stage, India will be there in 10 years or less as the economy is growing beyound the predicted 6% a year GDP range.

          Comment

          Working...
          X