Indo-Asian News Service
New Delhi, May 6, 2005
Indian officials are furious over French Ambassador to India Dominique Girard's charge that "factors other than commercial" had swung a $6.8 billion deal to the US-based Boeing for 50 planes for Air-India.
They, however, declined to formally react to the French envoy's comments suggesting that growing ties between India and the US rather than merit of the aircraft had clinched the deal for Boeing.
"It is clear that some factors other than commercial have played a role," the envoy had said.
"They (French) are acting as sore losers. You can't go around making such allegations," a senior official said on condition of anonymity.
Describing the envoy's remarks as "inappropriate", he said: "Any deal can be turned into a can of worms" and added there could be similar charges against Indian Airlines' decision last year to acquire 43 Airbus planes.
The French envoy's comments came days after a group of MPs wrote to the prime minister suggesting corruption in the two deals.
Civil Aviation Minister Praful Patel, however, said Air-India's decision to go for Boeing aircraft was neither based on geo-political consideration nor did the ministry direct it to do so. "I can assure you that it was a purely techno-economic consideration."
Patel sought to downplay the controversy, saying aircraft purchases have been institutionalised. "There are checks and balances," he said.
At the same time, he said there was enough time to correct any "wrongs" as the Air-India deal was still to be approved by the Government.
The US embassy in New Delhi declined to comment on the French envoy's comments that are turning out to be a full-blown diplomatic row over one of the biggest deals for commercial planes in recent times.
Girard had also said that Boeing would not be able to deliver the 50 planes on an urgent basis and that France's Airbus had been assured of the contract before Air-India decided to go for Boeing.
Civil Aviation officials said the row could delay the delivery of the planes, urgently required by Air-India.
The French envoy's remarks came in the wake of a demand by Airbus Industrie for a probe into Air-India's preference for Boeing airplanes, charging the airline with "unfair treatment" in the bidding process.
But the US aircraft maker said it won the deal on comparative cost benefits. "Common sense will tell you that there is nothing in their charges; nor is there any value to it," Boeing Commercial Airplanes senior vice president Dinesh A Keskar responded.
"I can say anything, the Airbus guys can stand here and say whatever they want, but the point is why and where airlines are putting their money," Keskar had said.
He said Boeing had offered Air-India a "complete, comprehensive and competitive package" for the 50 aircraft - 27 B787-8s, eight B777-200LRs and 15 777-300ERs.
These aircraft offer more passenger and cargo space, burn less fuel and weigh less - which means lower airport user and navigation charges and higher profitability, Keskar argued.
http://www.hindustantimes.com/news/181_1350590,0002.htm