Source: Yahoo.com

NEW DELHI, Oct 29 Asia Pulse - The fleet acquisition programme of Indian Airlines is likely to gain momentum, with officials on Thursday indicating the public sector carrier could start negotiating with aircraft manufacturers early next year.

Air India's acquisition programme is also likely to be finalised by November, Civil Aviation Secretary Ajay Prasad told reporters on the sidelines of the CII's Annual Conference here. ADVERTISEMENT

Asked how the two "loss-making" carriers would finance their acquisition, he said while the government was contemplating infusing additional equity into these two, giving "some kind of instrument from the government to guarantee the loans" was also being considered.

While IA's plans to buy 43 aircraft - a mix of Airbus 319s, 320s and 321s - costing over Rs 100 billion, Air India's purchase plans, which are still being given a final shape, are likely to cost over Rs 110 billion.

"Since the airlines would have to get debts, they would definitely consider the most beneficial debt structuring", Prasad said in reply to questions.

Till the time the actual deliveries begin in the next three to four years, the two public sector carriers would undertake leasing planes to augment their fleet strength and add to capacity on newer routes.