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Tue, Feb 21, 2006

Indian Airlines Signs Deal For 43 Airbuses

Latest Big Plane Order From India

Executives at state-run Indian Airlines signed on the dotted line Monday, agreeing to the purchase of 43 Airbus jets worth $2.5 billion.

The signing ceremony turned out to be a pretty big deal, too. Indian Chairman Vishwapati Trivedi signed for the airline. Airbus Vice President Kiran Rao signed for the manufacturer... as Indian Prime Minister Manmohan Singh and French President Jacques Chirac watched over their shoulders.

"It is a great achievement," EADS chief Noel Forgeard told reporters, according to India's Mail and Guardian.

It's also the latest development in the phenomenal growth of India's aviation sector, and comes less than two months after Air Deccan announced it's buying 30 A320s from Airbus.

"The acquisition of the 43 aircraft of the A320 family will allow Indian Airlines to step up growth and modernization, expand its market and further improve the quality of its product offering," said Indian Airlines CMD Dr. Vishwapati Trivedi.

Under terms of the deal, Indian will receive 20 A319s, four A320s and 19 A321s. It's the first time an Indian carrier has selected the A321.

Although Airbus has been the big winner in India so far, Boeing is by no means out of the mix. Air travel is forecast to grow by 20 percent there this year alone -- and its likely Boeing will reap some of the benefits of that, too.

Already, Air India has been told by its government ownership that it can go ahead with plans to buy 68 Boeing aircraft as part of its modernization and expansion plan.

Still, it's good to be Airbus right now... especially as the European consortium awaits word from India's Go Air on a rumored big fleet order from that carrier. Word of the Go Air deal is expected sometime this week, during the biennial Asian Aerospace Show in Singapore.

FMI: www.airbus.com, http://indian-airlines.nic.in

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