AI orders $1.6-m revamp, Govt clueless, furious

New Delhi: Amid all the mudslinging over the Commonwealth Games, the Civil Aviation Ministry seems headed for a clash with the Air India management over awarding a $1.6-million brand makeover contract to an Australian firm “without following due process”.
The Ministry, sources said, found itself caught completely unawares and conveyed its displeasure to the airline for undertaking this expenditure while it is on a bailout package from the government.
Not only was Rajiv Gandhi Bhavan stumped, but even embarrassed because the information came to the fore while preparing an answer to an unstarred Parliament question. In fact, Civil Aviation Minister Praful Patel stated in his reply: “Yes, Sir. Since NACIL (Air India) has been designated as the official carrier for the Commonwealth Games, M/s Cato Purnell Partners have been appointed by NACIL to revitalize its brand identity and the fees payable to them would be around USD 1,612,750 plus taxes.”
However, sources said, Air India made the information available to the Ministry only on Monday and while a factual reply was provided, inquiries were made as to how this decision was taken without the Ministry being kept in the loop.
04/08/10 Pranab Dhal Samanta/Indian Express

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Categories: NACIL Aug 2010