AI's woes assume political colour, BJP, Sena demand probe

Mumbai: The loss-making national carrier Air India (AI)'s financial woes assumed a political colour today with both the Bharatiya Janata Party and Shiv Sena demanding a thorough probe into the airline's monetary mess.
While the Shiv Sena-led unions have called upon Prime Minister Manmohan Singh to set up a Joint Parliamentary Committee (JPC), its ally BJP demanded that the Comptroller and Auditor General (CAG) and Chief Vigilance Commission (CVC) inquire into the government-run airline's functioning.
"The CAG and CVC must investigate the need and financial burden of the Rs 55,000-crore aircraft purchases. The UPA Government and Civil Aviation Ministry are responsible for the present horrible financial crisis in Air India," former MP and BJP leader Kirit Somaiya told reporters here.
The real reasons behind the present financial crisis are the interest burden, repayment and overhead expenses, he claimed.
While other air-carriers world wide have either deferred or cancelled deliveries of aircraft, Air India was still going ahead with its purchase plans despite bleeding financially, Somaiya said, adding "there is a need to re-evaluate the whole purchase."
The CAG and CVC must investigate the need, requirement and project proposal of this huge purchase and its financial implications, he said.
Earlier, the Sena-backed trade unions in Air India, which met the airline's Chairman and Managing Director, Arvind Jadhav, yesterday made a similar demand and also sought the Prime Minister's intervention on the issue.
24/06/09 Business Standard

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Categories: NACIL Jun 2009