Trouble brewing, 787 Dreamliners divide AI pilots
NEW DELHI, Oct. 28 -- India's national carrier Air India (AI) may not get the US-based Boeing 787 Dreamliner aircraft, as the government is reluctant to guarantee the loan AI wants to take to buy these modern planes.
The civil aviation ministry is adverse to AI's proposal to buy 27 Dreamliners costing R18,000 crore, considering its grave financial health, which does not appear to be on a road to recovery in the near future.
AI had placed an order for 68 planes to Boeing in 2006, of which 27 where Dreamliners, and another 43 to France-based Airbus, which the Comptroller and Auditor General (CAG) in its September 2011 report termed as a major reason for AI's financial crises.
The new airplanes from the two companies have come except the Dreamliners, which are expected to land in India this December, after a threeyear delay. By March 2011, Boeing was scheduled to have delivered 18 of these premium aircraft to AI.
Despite over 84 new aircraft, AI is in a debt of R42,570 crore and had accumulated a loss of R22,000 crore on March 31 this year. Its debt burden will cross R60,000 if the Dreamliners are bought.
The CAG report and the airline's financial health appear to be two major reasons for the ministry requesting a GoM to cancel the order, despite AI claiming that it would lead to huge litigation costs.
The ministry is reluctant to support AI's bid to get a loan from foreign banks for Dreamliners, saying the government would be paying a huge cost R6,600 crore to keep the national carrier afloat in this financial year.
The ministry, in its proposal to the GoM, had said that the additional financial burden of R18,000 crore to buy Dreamliners will plunge AI into further financial crises. "The Dreamliners will improve efficiency of AI and are a good replacement for the aging fleet," said an AI official, who believe that the deal can prove to be a turning point for AI.
Civil aviation minister Vyalar Ravi had questioned AI's capability to pay back the loan.
Air India (AI) could be headed for fresh trouble. Sixteen pilots of AI Express the low-cost international arm of the national carrier have reported sick in past two days, with 14 reporting sick on Thursday. A Delhi-Sharjah flight had to be cancelled on Wednesday and officials said the situation could get worse. The aviation ministry has also been briefed about the developments.
Sources said the reason behind the sudden increase in "sick leaves" is a turf war between pilots from erstwhile Indian Airlines (IA) and AI (as they existed in the pre-merger days) for getting to fly the premium Boeing 787 Dreamliners.
Out of the 64 pilots selected for 787 training, 32 belong to IA. AI pilots are livid with the management's decision with some terming it as a "bombshell" that could "seriously hurt their career progression".
Traditionally, AI used to be the international arm and IA was the domestic arm, which also handled flights to neighbouring countries.
"Flying on international longhaul routes, on which 787's are likely to be used, is our preserve.
AI pilots have been flying the Boeing family aircraft and it is easy to convert from one Boeing aircraft to another whereas IA pilots mostly fly Airbus aircraft. Conversion from an Airbus to a Boeing aircraft is a lengthier process," a senior Captain said.
In fact, the India Pilots Guild, an association of AI pilots, has officially protested to the management in the past against its decision to train IA pilots for 787's. Published by HT Syndication with permission from Hindustan Times. For any query with respect to this article or any other content requirement, please contact Editor at [email protected]