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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World India clears plane order for low-cost carriers AFP - Sunday, September 5 Send IM Story Print India clears plane order for low-cost carriers NEW DELHI (AFP) - – India's government has approved the multi-billion-dollar purchase of 46 new aircraft by three low-cost carriers SpiceJet, IndiGo and Jet Lite, as air travel revives. The acquisitions worth a total of 190 billion rupees (4.1 billion dollars) were cleared by a civil aviation ministry panel this week and the new planes will start arriving in November, the Business Standard reported on Saturday. Under the approvals, US manufacturer Boeing will supply 32 planes and its European rival Airbus 14. The hefty plane order by the low-cost airlines reflects their growing importance in the Indian market. Combined, the low-cost carriers fly half of all passengers in India. India's airlines are rapidly expanding their fleets as the country's economy rebounds from the global financial crisis, boosting the number of air travellers. Indian airlines carried a record 44 million passengers in 2009 and Boeing has said it expects that number to increase by eight to 10 percent this year. New Delhi-based SpiceJet received government approval for 30 Boeing 737-800s with delivery set to start from 2014. IndiGo, the countrys largest low-cost carrier with a market share of 16.9 percent, won approval for 14 A-320s for 2011-12. The third airline JetLite, a wholly-owned subsidiary of Jet Airways, has been granted permission to buy two Boeing 737-800s in November. The latest approvals came after the government last month gave in-principle clearance to fast-expanding IndiGo to buy 150 new aircraft over the next two to three years as it looks to fly international routes. That comes on top of 100 Airbus A320 jets Indigo ordered in 2005 -- for which deliveries will run until 2015. The company has given no cost for its planned acquisition spree but media reports have estimated it at around 650 billion rupees. The low-cost boom has forced full-service carriers Kingfisher Airlines and Jet Airways to start budget subsidiaries. They have shifted 60 to 70 percent of their total seat inventory to their low-cost operations -- JetLite, Jet Konnect and Kingfisher Red. Government-owned Air India is also looking at launching low-cost operations in the domestic sector. These capacity additions are set to take the number of low-cost seats on the domestic network to 80 percent, according to industry estimates. Recommend Send IM Story Print Related Articles Obama says his economic policies halted "bleeding" Reuters - 2 hours 24 minutes ago India's Tata Steel may seek $5.4-bln loan: report AFP - Sunday, September 5 FEATURE-Cargo ship embarks on historic Arctic passage Reuters - Sunday, September 5 Two dead in fresh clash over rebel Caucasus region Reuters - Sunday, September 5 Afghans crowd scandal-hit bank to withdraw savings AFP - Sunday, September 5 News Search Top Stories EU deal to curb speculative trading close: commissioner EU decision on support for banks due November: commissioner Afghans crowd scandal-hit bank to withdraw savings BP spill costs hit 8 bln dlrs as crews unearth clues Petrobras sells 64 bln dlrs of stock to fund oil search More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended Zeta-Jones 'furious' at late cancer diagnosis for Douglas BP spill costs hit 8 bln dlrs as crews unearth clues Israeli researchers develop promising new HIV treatment 'Prostitute' Carla Bruni deserves death: Iran media Fidel Castro leads first mass rally in four years More Most Viewed » Earth's upper atmosphere shrinking, scientists say Tiger's ex breaks her silence on sex scandal Most US students think Beethoven is a dog Unchecked migration would see Singapore swell, Haiti halve More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos World Cup 2010 Copyright © 2010 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Privacy Policy - Terms of Service - Community - Intellectual Property Rights Policy - Help

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