SFGate: Air India Warns Airbus About Jet Deal

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

 



=20
----------------------------------------------------------------------
This article was sent to you by someone who found it on SFGate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/05/11/financial/=
f130307D77.DTL
 ---------------------------------------------------------------------
Wednesday, May 11, 2005 (AP)
Air India Warns Airbus About Jet Deal
By SWATI DEB, Associated Press Writer


   (05-11) 13:03 PDT BOMBAY, India (AP) --

   State-run Air India has warned Airbus against criticizing the bidding
process in which it lost out to Boeing for the sale of 50 jets, a top
airline official said Wednesday.

   Air India said in a letter to the Airbus company secretary that "much of
the allegations and comments" of Airbus representatives "were not in
accordance with business sense and should not be repeated in future," V.
Thulasidas, Air India's chairman and managing director told reporters in
Bombay.

   Last month the government-owned airline announced plans to order 50
passenger aircraft from Chicago-based Boeing Co. for $6.8 billion.

   The Indian media quoted Airbus representatives at the time as saying the
European aircraft manufacturer was not given fair treatment.

   Airbus Vice President Nigel Harwood had told the Press Trust of India ne=
ws
agency that the European planemaker was not allowed to make a presentation
of its planned mid-range A350 aimed at competing with Boeing's 787, which
is under development.

   Thulasidas said the Civil Aviation Ministry had referred the fleet
acquisition and evaluation process to two federal watchdog agencies
— the Comptroller and Auditor General and the Central Vigilance
Commission. He said the decision to lease 19 Airbus A320s was also
referred to federal authorities.

   "Air India has nothing against Airbus," said Thulasidas. "It is for the
buyer to decide what we need and not for the seller to dictate ... We only
considered what was best for Air India and what made commercial sense."

   He dismissed as misplaced apprehensions that Air India would not purchase
planes from Airbus in future.

   In reply to questions, Thulasidas said he believed the growth of the
Indian airline industry would surpass Air India's planned purchases. "The
growth of the market will call for a review and that will open options for
considering the A380," he said of the Airbus superjumbo jet.

   India's aviation industry is rapidly expanding, with new private airlines
opening and the government moving toward privatization to improve airport
infrastructure.

   The race to meet the demand for new planes has foreign governments
pitching in as well. Days before Air India's April board meeting, U.S.
Transportation Secretary Norman Mineta visited New Delhi and said
Washington-New Delhi relations would benefit if Boeing got the order.

   The French government had also been lobbying on behalf of Airbus. French
Transportation Minister Gilles de Robien visited the Indian capital
earlier this month and met with India's aviation minister, Praful Patel.

   Many saw Air India's decision as a balancing act in diplomacy.

   But Thulasidas denied the airline succumbed to any pressure and said the
decision to go with Boeing was made after the board reviewed proposals
from both Airbus and Boeing.

   "There was no political or geopolitical consideration," he said.

 ----------------------------------------------------------------------
Copyright 2005 AP

[Index of Archives]         [NTSB]     [NASA KSC]     [Yosemite]     [Steve's Art]     [Deep Creek Hot Springs]     [NTSB]     [STB]     [Share Photos]     [Yosemite Campsites]