CVC orders probe into national carrier's aircraft buying spree

New Delhi: The Central Vigilance Commission (CVC) is learnt to have ordered an inquiry into Air India's decision to purchase 111 aircraft for Rs55,000 crore four years ago and then persist with it despite its poor financial condition, falling passenger share and the current global meltdown. Of the 111 aircraft, 68 are to be delivered by the American firm Boeing while 43 will come from Europe's Airbus. In the past three years, 48 of the 111 have already joined the fleet. Currently, the National Aviation Corporation of India Limited (NACIL), the company formed after the merger of Air India and Indian Airlines, has a fleet of 155 aircraft, including leased ones.
Sources told DNA that the CVC is expected to examine the insistence of the civil aviation ministry and the Air India board to go ahead with the commitment to buy new aircraft even though the airline has asked the government for Rs 15,000 crore as financial assistance and deferred salary payments.
Following a private complaint it received a few days ago, the CVC has asked the chief vigilance officer (CVO) of Air India to submit a comprehensive report, the sources said.
Many experts, employees and political leaders blame aircraft purchases for the national carrier's current financial mess, for which fingers have often been pointed at the civil aviation ministry under Praful Patel and the airline's board.
06/07/09 Josy Joseph & Yogesh Kumar/Daily News & Analysis

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Categories: NACIL Jul 2009