India's cabinet on December 15 authorised state-run carrier Air India to purchase 68 Boeing aircraft, a deal believed to be worth about $8 billion.

"In principle approval has been given subject to final price negotiations by an empowered group of ministers," Civil Aviation Minister Praful Patel said after a cabinet meeting.

The deal was first vetted in October at a meeting in New Delhi of top aviation and finance ministry officials.

An Air India source said at the time that the total deal was worth about 350 billion rupees, or $8bn.

The 68 aircraft include 50 long-range jets for Air India and 18 for its low-cost subsidiary, Air India Express, which was launched earlier this year.

The 18 737-800s for the budget carrier were added to the deal after Air India's board decided in April to award a seven-billion-dollar contract for 50 aircraft to Boeing over European rival manufacturer Airbus.

The planes are expected to be delivered over a period of 10 years starting in 2006, during which time the carrier plans to increase seat capacity by 12 percent annually. At catalog prices, the 50 planes for Air India - eight 777-200LRs, 15 777-300ERs and 27 of the future 787 Dreamliners - cost between $8.43 and $9.29bn.

(www.gulf-daily-news.com)