BA ,,, Air India Warns Airbus About Jet Deal
Wednesday May 11, 4:03 pm ET
By Swati Deb, Associated Press Writer
Air India Warns Airbus Against Criticizing Bidding Process for Jets, Which It Lost Out to Boeing
BOMBAY, India (AP) -- State-run Air India has warned Airbus against criticizing the bidding process in which it lost out to Boeing for the sale of 50 jets, a top airline official said Wednesday.
Air India said in a letter to the Airbus company secretary that "much of the allegations and comments" of Airbus representatives "were not in accordance with business sense and should not be repeated in future," V. Thulasidas, Air India's chairman and managing director told reporters in Bombay.
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Last month the government-owned airline announced plans to order 50 passenger aircraft from Chicago-based Boeing Co. for $6.8 billion.
The Indian media quoted Airbus representatives at the time as saying the European aircraft manufacturer was not given fair treatment.
Airbus Vice President Nigel Harwood had told the Press Trust of India news agency that the European planemaker was not allowed to make a presentation of its planned mid-range A350 aimed at competing with Boeing's 787, which is under development.
Thulasidas said the Civil Aviation Ministry had referred the fleet acquisition and evaluation process to two federal watchdog agencies -- the Comptroller and Auditor General and the Central Vigilance Commission. He said the decision to lease 19 Airbus A320s was also referred to federal authorities.
"Air India has nothing against Airbus," said Thulasidas. "It is for the buyer to decide what we need and not for the seller to dictate ... We only considered what was best for Air India and what made commercial sense."
He dismissed as misplaced apprehensions that Air India would not purchase planes from Airbus in future.
In reply to questions, Thulasidas said he believed the growth of the Indian airline industry would surpass Air India's planned purchases. "The growth of the market will call for a review and that will open options for considering the A380," he said of the Airbus superjumbo jet.
India's aviation industry is rapidly expanding, with new private airlines opening and the government moving toward privatization to improve airport infrastructure.
The race to meet the demand for new planes has foreign governments pitching in as well. Days before Air India's April board meeting, U.S. Transportation Secretary Norman Mineta visited New Delhi and said Washington-New Delhi relations would benefit if Boeing got the order.
The French government had also been lobbying on behalf of Airbus. French Transportation Minister Gilles de Robien visited the Indian capital earlier this month and met with India's aviation minister, Praful Patel.
Many saw Air India's decision as a balancing act in diplomacy.
But Thulasidas denied the airline succumbed to any pressure and said the decision to go with Boeing was made after the board reviewed proposals from both Airbus and Boeing.
"There was no political or geopolitical consideration," he said.
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