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Indian national airline to cut Dreamliner order

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Air India's board has recommended buying 12 Dreamliners compared to an original order in 2005 for 27 aircraft at a cost of around $4.1 billion, the newspaper reported a senior civil aviation ministry official as saying. (www.reuters.com) עוד...

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Bogush
Bogush 0
that's just great !
HRSINCLAIR
Horace Sinclair 0
@John this is a terrible time for all airlines, but for those in emerging markets its untenible.Boeing was hoping the 787 would be at the head of the table in all these countries, but a diving world economy, a product thats four years late, and strong competition from Airbus make this unprofitable for years to come.
canuck44
canuck44 0
Don't think it is an AirBus Boeing thing. JetAirways and SpiceJet are all Boeing and Kingfisher is all AirBus.

Remember the Indian Railroad is the worlds largest employer after the Chinese Red Army and the redundancy is typical of all the government efforts which are rife with nepotism and bureaucrats...precisely why they are getting their ass kicked by the competition. All of their single aisle fleet are AirBus. I have booked a few flights between Delhi and Chennai and they cannot compete on price basis by almost one third compared to SpiceJet.
preacher1
preacher1 0
Just to add to what you said and expand my other comment a little: You will always see that nepotism and bureauracracy in a government entity, especially in the 3rd world countries where position and status are still very meaningful, BUT, their competition is from privatly ran companies, that are trying to make a profit to stay in business, not just look to the government teat for more money. Maybe the teat ain't putting out enough milk to do all that, huh!
canuck44
canuck44 0
Wayne, if you add "corruption", you just described the US Government...particularly the DOJ, the EPA, the TSA and Department of Energy. Parkinson's Laws took over many Administrations ago.
preacher1
preacher1 0
The economy is probably enough by itself, but with all the fits and starts lately from Air India along with safety concerns, and getting rid of foreign pilots, it has probably hurt revenues projected to offset that heavy debt load, hence they can't afford them. They are probably going to have to figure out how to meet that competition John speaks of with what they've got, or else pee on the fire and call the dogs. It is an emerging market but one that DOES have competition rather than a single government entity trying to bring up infrastructure.
canuck44
canuck44 0
This is Catch-22 for AI. High cost structure, big debt load and lots of competition from JetAirways and Kingfisher plus rejection from potential team partners for reasons unannounced but speculated to be financial insecurity and quality. They need the lower cost of the 787 but can't afford it. The writing was on the wall when Singapore walked away from the acquisition deal.

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