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Indian Airlines dithers on major decisions, purchase of aircraft put off

The much talked about Indian Airlines board meeting, which was expected to take a decision on acquiring the ATR 42-500, among other matters, failed to make any headway today on the 50-seater project.

The discussion at the board meeting, held under the chairmanship of Anil Baijal, remained inconclusive on any of the 23 subjects on the agenda including the ATR 42-500 issue about which there has been much controversy and public debate.

Airline sources said the heavy media glare on the 50-seater project and the hesitancy to take a definite step with the Lok Sabha elections round the corner had discouraged a decision from being taken at today's meeting. Only routine discussions were held at today's meeting, the sources said.

Other subjects on the agenda today included writing-off of the A300 aircraft cockpit procedure trainer and two F-27 aircraft VT-Dom and VT-Don, wage policy, appointment of managing director of Airline Allied Services Limited and transfer of its shares and dilution of government's equity holding.

While the civil aviation ministry is keen that Indian Airlines goes in for the 50-seater aircraft, the move is being seen as pragmatic and practical approach to fulfilling national and social obligations. The national carrier however feels that it will only sink it further financially.

Ministry officials are of the view that the turbo prop aircraft is the backbone of the organic growth of major domestic carriers today and has a unique role, function and economics of operation which larger jets cannot.

Indian Airlines, which has an ageing fleet of Airbus and Boeing, feels it would rather invest in bigger aircraft and purchase of ATR 42-500s will only hamper its expansion plans.

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