Airlines of India - AI to retire its 744s citing "low fuel efficiency"

This after recently spending millions to refurbish them - new interiors, flat beds, IFE etc.

http://economictimes.indiatimes.com/articleshow/5171586.cms

AI's jumbo send-off after jumbo spend
28 Oct 2009, 1124 hrs IST, Manju V, TNN

MUMBAI: By the first week of January, the iconic jumbo jet with its distinct hump-like upper deck will no longer be a part of Air India ’s fleet.

The Boeing 747-400 , first inducted in 1993, will be phased out by the airline for its low fuel-efficiency . Just four years back though, Air India spent Rs 200 crore on refurbishing the very same fuel-guzzling aircraft , changing almost everything but the fuselage.

[...]

The jumbo’s last assignment—before it retires to the Air India hangars in Mumbai— will be operating most of the 137 Haj flights which are scheduled till January 5. After that three of the aircraft will be maintained by Air India only to operate VVIP flights.

“The airline is working out the modalities to get maximum returns on the other three Boeing 747s,’’ said an airline spokesperson,

[...]

“We are retaining three of these aircraft for VVIP flights. In today’s context, with fewer passengers, it is not economically viable to operate B747-400 s as they have a large number of seats and lower fuel efficiency,’’ said the spokesperson.

Pure stupidity - they can use the 744's for economies of scale, when the market picks up...

However, if they want *real* fuel efficiency, they have to also bench the 777's and go with A332's, as Jet has done - that is, *if* fuel efficiency is indeed better with the Airbuses!

Another example of a monumental blunder by the government. What's even more surprising that this is the same government that was involved @ the time of purchase of the aircraft (or was it?). Why do I get the feeling that there is more than just above-the-table politics involved in this decision?

Im sure the 200crore is the final padded upgrade price including fees to so called advisors, if you get my drift.

Someone told me that India is obsessed with offering tenders because it means that many a middlemen can have a kickback or two in the bid process.

Im sure the 200crore is the final padded upgrade price including fees to so called advisors, if you get my drift.

Someone told me that India is obsessed with offering tenders because it means that many a middlemen can have a kickback or two in the bid process.
Many of our clients bid for government contracts and tenders, and usually the middleman's fee is known, and so the tender is padded up. This also ensures that the ones "influencing" the selection process will pick specific vendors' bids because their "success fee" is assured. However, I don't know if AI, being a quasi-governmental organisation by itself, will do something like that. Then again, that is possibly the best way of covering up and explaining off the cost, so why not? Good point, d3vski !