India's largest aircraft manufacturers HAL in partnership with the French ATR recently bagged the global tender floated by the IA in mid-1997. ``We were the lowest bidder when IA floated the global tender for six 50-seater aircraft,'' Nair told reporters at Yelahanka, the site of the five-day airshow, where ATR is one of the 110 companies from as many as 17 countries participating in the show.

The loss-making airlines plans to pull out its wide-bodied jets from non-profitable routes and deploy smaller planes to cut on overheads, sources said. But wondered how the state-owned airlines, which flies to 57 destinations, including 10 overseas, would pay up for the orders, though it was likely to confirm the orderssoon. Incidentally, in the last 10 years, IA has not bought a single plane, an official said.

Each plane would cost at least $16 billion, he said. ``We are just waiting for IA to give out orders and would begin the production soon after that,'' he said, adding that the ATR planes would be assembled at HAL in Bangalore, the hub of India's aviation industry. ``This is not a joint venture but a partnership and HAL will be in absolute control of the production,'' he said. But HAL is not expected to do anything more than paint the aircraft and furnish them, sources told The Indian Express.

The IA in mid-1997 floated the global tender that it would place an order to the lowest bidder for six 50-seater passenger aircraft. In its second note, it said it would place an order for as many as five aircraft. IA later said that it might place an order for more aircraft, depending on the bid. And now that HAL-ATR have joined hands, IA is keeping silent on the deal, sources said.

Prabir Sengupta, SecretaryDefence Production and Supplies (DP&S) said the show would be an opportunity for Indian and foreign companies to display their capability in design, development and production of aircraft and ground systems, both in defence as well as the civil sector.

The companies would present a variety of wares, ranging from basic aircraft material, systems manufacture and integration, to major civil and military engine and aircraft integration, he said.

Union Minister for Defence George Fernandes will inaugurate the show. The first three days have been earmarked as trade days meant for trade visitors only, December 11 and 12 will be open to public. There will be flying displays on both the public days so that people can have a glimpse of the fabulous aircraft flying.