"The SCSR aircraft will help Air India in sourcing domestic traffic from non-metro locations. The MCLR aircraft will be used for routes such as Delhi-London" said official spokesperson of Air India Jitendra Bhargava.Air India (AI) has already briefed France-based aircraft manufacturer Airbus Industrie and engine makers GE and CFN on the airline's purchase requirements. The AI top brass will meet officials of the Seattle-based Boeing company next week. Boeing and Airbus form virtually a duopoly in the global market for commercial passenger aircraft. The manufacturers will now get back to AI with details of the aircraft models in their stable. Bhargava cautioned that AI's plans to purchase new aircraft are at a very preliminary stage. The final choice of aircraft will depend on the economic viability analysis made at that time.

"We have just sent outinitial feelers in the market. The entire mechanism, the technical evaluation and financial bids, will take time" said Bhargava. Incidentally, AI has been pursuing acquisition of the MCLR aircraft for nearly three years now. However, successive governments have been unable to take a final decision on the aircraft purchase.

The SCLR aircraft was added to the airline's shopping list after new factors come into play such as the economic recession in South-East Asia and slowdown in international traffic growth.

AI is as yet unsure about how it will fund the aircraft purchase. The Government is believed to be finalising plans to disinvest stake in the cash-strapped airline. If the Air India disinvestment proceeds along the recommendations of the Disinvestment Commission, Air India can hope for an equity infusion of Rs 1000 crore from the Government.

This is to be followed with a Rs 770 crore equity infusion by a strategic partner. A disinvestment of 10 per cent equity by the Government in favour of AIemployees and another 10 per cent in favour of financial institutions will result in a new equity of Rs 1924 crore being inducted in the national flag carrier.