Ahead of the EU-India Business Summit beginning on Wednesday, the government on Tuesday moved closer towards reaching a final agreement with Airbus Industrie on the price at which Indian Airlines would purchase 43 aircraft under its fleet expansion plans.After the last price negotiations between the company and the empowered group of ministers (EGoM) that concluded on Tuesday, it is learnt that Airbus has reduced their price from the earlier quoted Rs 10,089 crore.Short of announcing the final outcome, after a four-hour-long meeting between the EGoM and Airbus executives, Civil Avaiation Minister Praful Patel told reporters that while he was “satisfied” with the way the negotiations proceeded, “a final decision on the matter would be taken tomorrow by the EGoM.’’ He said the government would announce its decision after that meeting.Today’s meeting was divided into two parts — first with company executives and then between the group of ministers.After this meeting, Patel said the government used Rs 10,089 crore as the base price for the aircraft that would be finally delivered by 2009-10 and thereafter worked backwards to arrive at a mutually-agreed price.Patel said there would be no further rounds of negotiations with Airbus on the matter. While the minister did disclose that the airline manufacturer offered discounts at today’s meeting, he did not offer details. He, however, said tomorrow’s EGOM meet would also be the final such meeting.The EGoM is headed by FM P. Chidambaram, with Praful Patel, Oscar Fernandes and Law Minister H.R. Bharadwaj the other members. Today’s was the first meeting between GoM and the company executives.
