Air India lost Rs 4,324 cr due to poor leasing decisions

New Delhi: The vigilance department of Air India has recommended action against the airline’s leasing committee. The department says that the airlines lost at least Rs 4,324.28 crores between 2005 and 2010 due to poor decision-making of the committee.
It noted that all the 16 lease agreements examined by it weren’t able to achieve even 50 per cent of the revenues and aircraft utilisation targets which were projected ahead of leasing.
The report, which was submitted to the Air India Board in November last year, found several irregularities in the leasing of around 50 aircraft during 2005-2010, accounting for nearly 31 per cent of the Rs 13,835 crore losses incurred by the airline in the period .
The airline, in its response argued that some of these aircraft were deployed to protect their slots or maintain integrity of their schedules or for expansion.
29/05/12 Smita Aggarwal/Indian Express

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Categories: Air India May 2012