India OKs Purchase Of 68 Boeing Planes By Air India
Saturday December 24, 7:34 AM EST
NEW DELHI -(Dow Jones)- A panel of Indian ministers Saturday approved Air India's (AIN.YY) proposal to buy 68 aircraft from Boeing Co. (BA) (BA) at a discounted price of about INR350 billion, officials in the ministry of civil aviation said. "We have been able to get a monetary discount of INR10 billion from Boeing (BA) and about $205 million commitment for investment by Boeing (BA) and engine manufacturer General Electric Co. (GE) (GE)," minister for civil aviation Praful Patel told reporters after completing price negotiations with the plane manufacturers. As a part of the negotiations, the option of buying 15 aircraft has been converted into a firm order. Air India will now place a firm order for all 68 aircraft. if ((typeof tag336_1) == "function") { tag336_1(); } else { if (typeof(site) == "undefined" & typeof(moAdData) != "undefined") site = moAdData.site;
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','336','280','3','2',116023,76340,'0','325',253);" onclick="pr_trk('ac',116023,2);" onmouseout="if(typeof(prRoll)=='function')prBExit(event);" shape=RECT target=_new coords=103,253,214,280 href="http://c4.excite.com/adclick/CID=00016b94c3ee6fed00000000/AREA=MONEY/SITE=Excite/AAMSZ=336x280/CM=32045/CR=17758/AD=288/CC=93076/ACB_RANDOM=5261072177?/relocate=http://www.scottrade.com/index.asp?supbid=61977";>
','336','280','3','3',116023,76341,'0','325',253);" onclick="pr_trk('ac',116023,3);" onmouseout="if(typeof(prRoll)=='function')prBExit(event);" shape=RECT target=_new coords=214,253,336,280 href="http://c4.excite.com/adclick/CID=00016b94c3ee6fed00000000/AREA=MONEY/SITE=Excite/AAMSZ=336x280/CM=32045/CR=17758/AD=288/CC=93076/ACB_RANDOM=5261072177?/relocate=http://www.scottrade.com/index.asp?supbid=61977";> Delivery of the aircraft will now end by 2011 instead of 2012, Patel said. The original price for the 68 aircraft was INR380 billion. The final price was decided after several rounds of negotiations between Boeing (BA) and the Indian government. The agreement is to be signed after a formal approval from the Indian government. The aircraft include 50 for Air India and 18 for its no-frills subsidiary Air India Express. The type of aircraft include 27 Boeing (BA)-787s, 15 Boeing (BA)-777- 300ERs, and eight Boeing (BA)-777-200LRs. Boeing (BA) has agreed to invest up to $100
million in India for setting up a maintenance repair and overhaul complex. Also, the U.S. plane-maker will also invest $75 million to install four aircraft simulators. Engine manufacturer GE has agreed to invest $20 million for an engine shop and another $10 million for training and other civil aviation requirements. -By Nina Mehta, Dow Jones Newswires; 91-11-23074020; nina.mehta@xxxxxxxxxxxx
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