India’s Central Bureau of Investigation (CIB) has filed cases against unidentified persons from the Ministry of Civil Aviation, Air India and others for suspect decisions made under an earlier government regime that resulted in heavy losses for the state-run airline.
One case relates to the slashing of profit-making Air India routes in favour of national and international private airlines.
Other allegations concern the purchase of 111 aircraft for national airlines costing about Rs700 billion (US$10.9 billion) to benefit foreign aircraft manufacturers; and the leasing of large number of aircraft without due consideration, proper route study and marketing or price strategy. It was also alleged that the aircrafts were leased even while aircraft acquisition was ongoing.
The CIB is also investigating the merger of Air India and Indian Airlines, which caused losses to the national exchequer.
Meanwhile, the Narendra Modi government is mulling divesting government stake in the loss-making Air India, which is surviving on a nine-year bailout package approved by an earlier administration in 2012.
