The airline might find it difficult to fill posts for senior trainee pilots for Airbus A320 aircraft.

ICPA had highlighted that 40-45 junior pilots at Air India were under stress because being ad hoc, they got a third of the salary. Besides, one fine day, the airline management had “unilaterally” changed the terms of employment for co-pilots. The letter was sent to DGCA just a few days after a German pilot (suffering depression) crashed a Lufthansa plane in the French Alps, killing 150.

The carrier wants to purchase at least 14 A320neo aircraft, according to the person, who asked not to be identified as the discussions are private. An A320neo costs $106.2 million at list prices. Buyers usually get a discount when they order planes in bulk.

The Union civil aviation ministry told a parliamentary panel recently that AI could default on repayment of loans taken for aircraft purchase if it did not get the entire expected equity infusion. And, that this could mean a series of delayed payments to oil companies, the Airports Authority of India (AAI) and on repayment of interest on the government-guaranteed debentures. The ministry said so to the standing committee on transport, tourism and culture.

However, this move to reduce debt and cut interest costs may not be easy, caution experts.

The proposal has been mooted at the behest of Air India, which continues to be in precarious financial health despite Rs 17,000 crore equity infusion under the turnaround plan.

The airline has been struggling to turn profitable for years and has posted continuous operating losses. However, the losses have been reducing, from Rs 5,140 crore in 2011-12 to Rs 3,807 crore in 2012-13 and Rs 2,123 crore in 2013-14.

The airline, which currently has 102 aircraft in its fleet, excluding that of its subsidiary Alliance Air, plans to increase its fleet size to 152 by 2021.

At present, it uses both narrow-body Airbus A320 and wide-body Boeing planes (747-400s, 777s and 787-8) on international routes. The 787-9 variant has a higher range and 40 more seats over the 787-8.

Under the arrangement, Air India would sell the six planes to the lessor and immediately lease them back under an operating lease for 12 years with an option to extend, the carrier said in a tender statement. “Air India has fixed a reserve purchase price of $120 million (Rs 750 crore) for each aircraft,” the tender said.