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Thursday, 6 February, 2003, 07:21 GMT
French claim Airbus victory in India
Indian Airlines plane taking-off
India Airlines needs to upgrade its ageing fleet
The French Prime Minister has claimed victory for Airbus in its battle with Boeing for a 43 passenger plane order from Indian Airlines worth $2.1bn.

The relationship between Airbus and India is about more than trade. It involves a true industrial partnership

Jean-Pierre Raffarin
French Prime Minister
"Indian Airlines has chosen to buy 43 Airbus planes," Prime Minister Jean-Pierre Raffarin in a statement.

"I am of course hopeful that this choice will soon be made official."

Last month, the European firm, which has traditionally lagged behind its US arch-rival Boeing, said it was about to claim the top spot as the world's largest aircraft maker.

Indian Airlines, which the government is trying to modernise and privatise, is the country's largest domestic carrier.

Diplomatic shenanigans

The government must still approve the deal, which has already been given the go-ahead by the carrier's board, with the Toulouse-based plane maker.

The decision has been delayed while Boeing and the US government engaged in a last minute lobbying push for its planes.

The airline already has a fleet of 41 Airbus aircraft.

The government is expected to hand Boeing an order by state-owned international carrier Air India.

It is looking to buy 10 long-range, 250-seater aircraft with options for seven more and 18, 160-seater planes.

French ties

Mr Raffarin said Airbus was in talks with India's state-run aircraft-maker Hindustan Aeronautics Limited (HAL) to supply the parts.

HAL makes doors for the Airbus A-320.

He was speaking at the signing of joint ventures between HAL and France's Snecma and Turbomeca to make aircraft engines.

"The relationship between Airbus and India is about more than trade. It involves a true industrial partnership," he said.

The joint ventures will produce engines for civil aircraft and military helicopters aimed at the export market.

See also:

14 Jan 03 | Business
23 Jul 02 | Business
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