01 June 2004	Tuesday	12 Rabi-us-Saani 1425

ISLAMABAD, May 31: The government defended the purchase of Boeing 777 on the floor of the National Assembly on Monday as the opposition questioned the deal and demanded explanation for installation of substandard seats in the aircraft.

The parliamentary secretary for defence, Major (retired) Tanvir Hussain, advanced arguments to explain the price difference of almost $100 million for purchasing the Boeing 777 at a cost of $1458.9 million in preference to A340 aircraft offered by the Airbus at $1347 million.

Defending the deal, he said the price difference of $100 million was justified in view of the number of features in Boeing 777 which included "new design of the aircraft" which entered into service four years after the A340, had more "passenger appeal", was faster than A340 Airbus and less prone to corrosion.

Responding to a question of MNA Syed Naveed Qamar about objections raised by the Planning Commission on the way the approval was obtained for the purchase of Boeing, Mr Hussain said replies were provided to the two objections which primarily concerned observations on loan and the interest rate and the tax paid by the company.

The suggestion of MMA's leader Liaquat Baloch for briefing the Standing Committee and taking it into confidence over the controversial Boeing 777 deal was shot down by the government.

According to the record placed before the House by the government, average price of recently purchased eight Boeing 777 family aircraft was around $139 million and the total project cost of the aircraft including spares, facilities, dries and other miscellaneous charges was $1458.9 million.

In its justification for purchase of the aircraft, the government informed the House that costs were based on the delivery price worked out after incorporating the escalations using the economic escalation indices. The government said the Boeing 777 family aircraft offered 6 per cent more passenger capacity, thus providing additional revenue potential over A340 fleet.

Comparative prices of the Airbus made available by the government revealed that average price of eight A340 aircraft offered by Airbus Industries was $124 million and the total project cost for eight A340 aircraft including spares, facilities, duties and other miscellaneous charges was $1347 million. "The average aircraft price also includes two A340-600s with deliveries in 2006 and 2008, respectively," the government said.