Sept. 06--MUMBAI -- State-run Air India Ltd plans to lease nearly a dozen small planes as the debt-laden airline seeks to connect more small cities, according to a government and an airline official. They said it will shortly float a global tender to lease 70-90 seater planes to replace some of the ageing aircraft of its regional passenger airline unit Alliance Air, that connects Tier II and Tier III cities.
"Air India is looking at all options in terms of aircraft models. The airline is evaluating ATRs and Q400 types of aircraft. Essentially, it is looking at 70-90 seater planes that will fly for Alliance Air," said the government official, requesting anonymity.
An Air India official, who also requested anonymity, confirmed the development adding the fleet plan of Alliance Air has been finalised and it needs to replace current ageing and fuel guzzling planes.
"As a part of fresh fleet plan, Alliance Air has introduced 'Buy-on-Board catering services on its flights starting 1 August 2013," said the Air India executive.
Air India has a total debt of Rs.40,000 crore.
Copyright 2013 - Mint, New Delhi
