India’s bleeding national carrier may have to hold back its plans to expand its fleet. The aviation ministry is rethinking whether the airline should in fact go ahead with its order for 27 Boeing 787 Dreamliners. The order is part of the supersized order for 111 new aircraft. The total transaction is valued at `55,000 crore.
However, AI is already showing losses of INR7,000 crore in 2010-11 which will take the tally of losses to around INR21,000 crore. Moreover in what presents a grim future, its daily income is said to just about cover fuel costs – also on the rise and the airline is struggling to even get loans to pay staff salaries. So the ministry feels like the order may not be a good idea.
