Leasing aircraft on loss-making routes cost AI Rs. 4,234 crore

New Delhi: An investigation by Air India’s internal vigilance department found the airline lost a staggering Rs. 4,234.28 crore between 2005 and 2010 because it leased 16 aircraft to enhance capacity on routes that were already making losses, documents obtained by The Hindu show.
The investigation, whose findings were submitted for review by Air India’s Board on November 29, 2011, shows the leasing losses accounted for a third of the airline’s total losses of Rs. 13,835 crore.
Earlier, a report by the Comptroller and Auditor-General said the airline had also lost Rs. 68,000 crore because it committed itself to purchasing aircraft far beyond the recommendations of its own feasibility studies.
23/08/12 Sujay Mehdudia/The Hindu

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Categories: Air India Aug 2012