Air India board clears sale of five Boeing 777-200 to Etihad Airways

The sale of the aircraft, which have high operating cost, will help improve Air India’s financial performance

GN Bureau | October 17, 2013



The Air India board has approved the sale of five Boeing 777-200 LRs to Abu Dhabi-based Etihad Airways. The transaction is likely to fetch around $350 million (Rs 2,100 crore) to the airline. The proposal will now require clearance from the union cabinet.

The delivery of aircraft to Etihad airways is scheduled to commence from January 2014. Air India owns a fleet of 20 Boeing 777 200-long range and Boeing 777 300-extreme range that are operated on the routes to the US, Europe, China, Japan, Korea and Saudi Arabia. Out of the 20, eight 200-LRs are flown to Seoul, Hong Kong, Tokyo and Osaka but operational profitability has been a concern. The accruals through sale would be utilised to settle outstanding loans against the aircraft.

The sale of the aircraft will also help improve Air India’s financial performance as these planes have high operating cost and the airline has been struggling to achieve break-even on routes, where it has deployed the aircraft.

Air India will deploy Boeing 777 300-ER to Newark, while Dreamliners will replace 777 200-LRs to Seoul, Hong Kong, Tokyo and Osaka.

Etihad Airways has said it plans to deploy the aircraft on a new route between Abu Dhabi and Los Angeles starting June 2014.

Comments

 

Other News

When religion, politics and Bollywood come together

Tavleen Singh, noted journalist and political commentator, has turned to fiction, with her debut novel ‘The Actor’ (HaperCollins India). Set in the near future, it has a superstar, Amit Singh, turning to politics, when the political landscape is dominated by prime minister Guru Gaynendraj

Cabinet approves setting up of Integrated Transport & Logistics Authority

The union cabinet, chaired by prime minister Narendra Modi, on Tuesday approved the setting up of a Special Purpose Vehicle (SPV), called Integrated Transport & Logistics Authority (ITLA), to strengthen research, planning, appraisal, monitoring and impact assessment within the broad domains of Transp

Why foundational literacy and numeracy is key to school education

Foundational Literacy and Numeracy (FLN) are often described as the building blocks of education. Yet, their significance goes well beyond a child’s ability to read a sentence, write a response or solve a basic mathematical problem. These foundational skills shape how children understand the world,

When police data becomes the algorithm

For decades, policing has followed a familiar sequence: a crime occurs, the police respond, an investigation produces records and those records become part of the institutional memory of the criminal justice system. Artificial intelligence is beginning to alter that sequence. Instead of merely recording

Before India voted, the framers worried about the referee

“We are making a Constitution forever and not only for today.” Shibban Lal Saksena said this in the Constituent Assembly on June 15, 1949. He was warning that a ruling party might one day choose a loyalist to run India’s elections. Seventy-seven years later, the Supreme Court is wrestli

Delhi moves to real-time traffic management

The Cabinet Committee on Economic Affairs (CCEA), chaired by prime minister Narendra Modi, has approved implementation of the ITMS Project by Delhi Police at an estimated cost of Rs.1,789.52 crore, inclusive of taxes. The project will cover 42 identified traffic corridors and will be implemented in three

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter