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Economics behind decision to select Boeing 787: Air India

Economics behind decision to select Boeing 787: Air India
PTI
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First Published: Mon, Jul 09 2007. 03 53 PM IST
Updated: Mon, Jul 09 2007. 03 53 PM IST
Seattle: As Boeing rolled out its new B-787 ‘Dreamliner´, Air India has said it had chosen the aircraft as its work-horse keeping in mind concerns of economics and environment while the US aircraft major promised to buy goods and services from Indian companies in return.
“We didn’t actually chose Boeing as such. We chose the aircraft,” Air India Chairman and Managing Director V Thulasidas told reporters here on 8 July.
Observing that selecting the B-787 made “better business sense”, he said the choice for the aircraft and its engines was “actually a major step” in increasing fuel efficiency and savings, besides making flying environment-friendly.
Boeing’s Senior Vice President (Sales) Dinesh Keskar said “the biggest piece is our commitment to India of $1.7 billion as part of this deal where we will buy goods and services from companies in India”.
“It is going to create a lot of potential jobs in India and at the same time transfer technology. We are working with quality companies in India like Infosys, Wipro, Satyam, HCL and we are also continuing to work with Hindustan Aeronautics Limited,” Keskar said.
Boeing has already agreed to create a Maintenance, Repair and Overhaul (MRO) facility in Nagpur and a pilot training programme by funding to develop some existing flying schools.
While Air India has ordered 27 B-787s as part of its total order of 68 aircraft, Jet Airways has booked ten of them. For Air India, the 787s would be the mainstay of its operations in future.
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First Published: Mon, Jul 09 2007. 03 53 PM IST