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Airbus has Indian deal worth 2.5 billion dollars

     New Delhi: French airline conglomerate Airbus said on Monday it concluded an agreement with India for the purchase of 43 Airbus aircraft. The deal, estimated at 2.5 billion dollars, had already been approved by the Indian cabinet, but has been finalised as French President Jacques Chirac visits India in a bid to boost trade ties. The purchase of the 43 aircraft will help Indian Airlines replace its ageing fleet at a time when the civil aviation sector is booming - thanks to falling ticket prices, the arrival of discount airlines and rising disposable incomes.

    Noel Forgeard, Chief Executive Officer, Airbus, who is part of the delegation accompanying Chirac, told reporters before actual inking of the agreement that "mood" had been set right for the deal. "I think there is no better proof than that the mood is not affected than the signatures of the two agreements, I just mentioned with Indian Airlines and ISRO. We have set the mood not to be harmed whatsoever. On the contrary the mood is very warm. Yesterday President Chirac gathered industrialists of his delegation to tell us how much he expects to develop business in India. We do not only sell to India we settle industrially. For EADS group, which is the parent company of Astrium and Airbus. The EADS (European Aeronautic Defence and Space Company) group will create a service centre for software and engineer in India so the mood could not be better," said Forgeard. Over the past few years, Indian has lost market share to nimble private players such as Jet Airways Ltd., which has a relatively modern fleet and better standards of service. Indian Airlines plans to buy 19 A319s, four A320s and 20 A321s as a part of a five-year fleet renewal programme. All the aircraft will be fitted with CFM-56 engines made jointly by General Electric Co. and Snecma a state-controlled French aerospace company.
-Feb 20,  2006

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