Air India inducts fuel efficient A320 neo plane. Here’s everything you should know about it

After IndiGo and GoAir, Air India inducted first fuel efficient Airbus 320 neo plane. Air India wants to increase the capacity in the domestic market which is growing at a rate of over 20% for nearly two years now.

The A320 neo (new engine option) plane is configured with 162 seats, including 12 in the business class. The plane has been leased from Kuwait's ALAFCO and 14 more A320 Neos will be added to the fleet.

The new aircraft got the traditional water canon salute at the international airport in New Delhi.

Air India CMD Ashwani Lohani said a total of the airline would also look at using these planes for international operations.

Air India Group's fleet size now stands at 138 planes.

The national carrier has plans to induct a total of 29 A320 neos into its fleet by March 2019.

While Air India has already tied up with three lessors - ALAFCO, GECAPS and CIT - for 22 planes, the process to select a bidder for the remaining seven such planes is underway.

The maker of A320 neo, European aviation major Airbus claims that these planes burn 15 per cent less fuel than the existing model.

As per original schedule, Air India was to receive three such planes in this fiscal with two of them being in January it but the delivery was delayed.