Air India Ltd, the nation's biggest carrier, is asking the government to buy 28 planes from Boeing Co and Airbus SAS worth 100 billion rupees (US$2.2 billion) to expand the airline's fleet.

The airline's board will request the Civil Aviation Ministry order 10 long-range Airbus A340 jetliners and 18 short-range Boeing 737-800 planes, the airline said.

Engines would be supplied by General Electric Co and Snecma SA's CFM International venture.

The additions of the planes to Air India's 29-aircraft fleet will be the most significant for the state-owned carrier in two decades. The Mumbai-based airline is expanding as rising urban incomes stoke demand for air travel in Asia's third-biggest economy, which is expected to expand as much as 7 percent in the year to March 31.

Air India has planned to buy as many as 35 planes from Chicago-based Boeing or Toulouse, France-based Airbus, the world's two biggest planemakers, for more than two years. It was considering ordering 17 Boeing 777-200ER models or Airbus A340-300s and 18 Boeing 737-800s or Airbus A320s.

The airline didn't give a breakdown of the price by company or specify which model of A340 is being ordered.

The Airbus planes together would cost between US$1.38 billion and US$1.5 billion at list prices, while the Boeing order would cost as much as US$1.16 billion.

Air India plans to start a route between New Delhi and Shanghai, China's main financial center, by February and is adding flights to Newark and Chicago.

The new aircraft will be bought over five years and will also replace 14 leased aircraft, including 11 Airbus A310s and three Boeing 747-200s.

(eastday.com November 10, 2003)