A report of the Parliamentary Public Accounts Committee (PAC) has concluded that the decision of the government (in 2005) regarding the number of aircraft to be procured by national carrier Air India from Boeing was “unfortunate” since the Government “went ahead with the deal without having a long-term perspective”.
The Government had then approved acquisition of 50 aircraft by Air India from (US aviation giant) Boeing.
“The committee deplores that when the purchase agreement was concluded in December, 2005, a desperate need for 50 aircraft was made out and in the next few years, there had to be deferment in the delivery of aircraft to reduce the burden of loan repayment,” the PAC report has said. It added that the number of aircraft to be procured was revised on the grounds that there was a requirement for long-range aircraft on the India-United States route despite the fact that “historically, the India-US sector was a loss-making sector and a commercially unviable route”. The PAC report has asked for responsibility to be fixed on the matter.
07/02/14 Asian Age
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The Government had then approved acquisition of 50 aircraft by Air India from (US aviation giant) Boeing.
“The committee deplores that when the purchase agreement was concluded in December, 2005, a desperate need for 50 aircraft was made out and in the next few years, there had to be deferment in the delivery of aircraft to reduce the burden of loan repayment,” the PAC report has said. It added that the number of aircraft to be procured was revised on the grounds that there was a requirement for long-range aircraft on the India-United States route despite the fact that “historically, the India-US sector was a loss-making sector and a commercially unviable route”. The PAC report has asked for responsibility to be fixed on the matter.
07/02/14 Asian Age
