CAG report slams Air India for mismanagement

Mumbai: Just days after the Air India pilots strike, it looks like there's more trouble for the airline.
A CAG report now has slammed the airline for mismanagement and incurring huge losses at its jet engine overhaul workshop.
From buying aircraft and employing people it can't sustain, stories of mismanagement and over-expenditure in debt-strapped Air India don't seem to end. A new CAG report with CNN-IBN slams Air India for 'wasteful expenditure', 'inefficiency', and 'excessive delays' in repairing and overhauling its fleet's engines, resulting in huge losses for the airline.
The report, that pertains to the functioning of Air India's jet engine workshop in Delhi points out that despite having in-house capability, the company sent 41 engines and engine parts to outside agencies for repair, incurring an expenditure of Rs 498.66 crore.
It also says that the workshop was under-utilized, removing more engines than it repaired, resulting in 1-11 aircraft being grounded for over 3.5 years. The grounded aircraft resulted in a revenue loss of approximately Rs 291 crore rupees.
08/05/11 Raksha Shetty/CNN-IBN

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Categories: Air India May 2011