The board of state-run Air India has approved seeking bids to buy 50 new aircraft, a company spokesman said Wednesday. The international carrier said it would invite bids from aircraft and engine manufacturers for the proposed new fleet, of which two-thirds will be on firm order basis, and one-third on an optional basis.
The airline short-listed three types of long-range aircraft, the medium capacity Airbus 340-500 or Boeing 777-200 LR, the 350-seat Airbus 340-600 or Boeing 777-300 ER, and the 250-seat Airbus 330-200 or Boeing 7E7-8.
"The board has approved the plan and we would go to the government for all procedural clearances," Air India spokesman Jitendra Bhargav said.
The new aircraft would be delivered over a period of 10 years, during which Air India plans to increase seat capacity by 12 percent annually, he added.
Global aircraft makers such as European consortium Airbus Industries and US-based Boeing are battling for billions of dollars of passenger aircraft orders from India where air travel is poised for growth from new low-cost airlines and India's international and domestic state-run airlines, industry officials said.