The Cabinet Committee on Security has deferred a decision on the fleet acquisition plans of Indian Airlines and Air-India. The Cabinet will take up the issue again after a month.

Senior civil aviation ministry officials said the fleet acquisition plan of both Indian Airlines and Air-India had been presented to the committee.

"The Cabinet committee took up the issue, but did not arrive at any decision," they added.

The board of Indian Airlines had approved the acquisition of 43 aircraft at Rs 10,089 crore (Rs 100.89 billion) in March 2002.

Air-India had also approved the acquisition of 17 long-haul 250 seaters in November 2002, entailing a cost of around $2 billion.

The finance ministry had earlier turned down a civil aviation ministry proposal to pump in Rs 325 crore (Rs billion) as equity in Indian Airlines to facilitate its fleet expansion plan on the grounds that the airline was on the divestment roster.

The civil aviation ministry has been contesting this stand claiming that fleet acquistion was a must for the survival of Indian Airlines.

The ministry had even decided to club the Indian Airlines and Air-India aircraft acquisition proposals to expedite matters.

Indian Airlines has recommended the induction of the Airbus A-320, A-319 and A-321 into its fleet.

Air-India has approved  the acquisition of 17 long-haul 250 seater aircraft and shortlisted the Airbus A-340-300 and Boeing 777-200 extended range for the same.

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