Kolkata: In a major move to expand its fleet, Indian Airlines (IA) has decided to acquire 43 aircraft over the next five years at an estimated cost of Rs 10,089 crore.

The IA Board of Directors recently approved and recommended to the Centre that 43 aircraft be acquired from 2003-04 through to 2007-08, the airline's Regional Director (East) Vikram Badshah said in Kolkata on July 5.

Badshah told reporters that most of the new aircraft would replace present ones and was aimed at further strengthening the existing fleet.

Stating that while GDP was expected to grow at 5.4 per cent during the current year, the projected average growth in the domestic aviation section was expected to be five per cent annually for the next five years.

The IA, he said, had focussed its attention on better product and service to passengers, enhancing revenue, outsourcing activities, cost-control measures and adoption of asset management techniques.

Stating that domestic aviation passenger market in India was adversely affected by around seven to 10 per cent, Badsha said that IA, likewise, suffered a similar decline of about seven to eight per cent. "The same trend prevailed in the Eastern region."

PTI