Sunday, August 21, 2011

Will the CAG report on Air India be tabled in Parliament?

Neelam Mathews
Aug 21, 2011

The Comptroller and Auditor General (CAG) has completed its audit on Air India which is to be tabled in Parliament. Given its present crisis, there are some doubts being expressed whether the government responsible for scheduling, will table it in this session.

The CAG report includes the purchase of 111 aircraft for over Rs 40,000 crore in 2006. It indicates losses resulted from a  wrong purchase plans, inflated loans and delay in the return of leased aircraft.

In its report, the CAG has concluded that “capacity expansion by both the erstwhile airlines (Indian Airlines and Air India) without adequate due diligence by either the companies or the ministry as to requirement and imprudent project financing has put the merged entity into acute financial stress,” writes DNA.

While CAG has examined Air India’s operations from 2005-2010, the draft CAG report does not mention then civil aviation minister Praful Patel. Sources says it could be likely that the main report will mention Patel. Also Air India’s delays in joining Star Alliance are likely to feature in the report.

1 comment:

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