CAG questions Air India’s Boeing order
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The Comptroller and Auditor General (CAG) has questioned the UPA’s decision to order 111 aircraft worth over INR50,000 crore in 2006 for Air India following its merger with Indian Airlines.
The CAG’s grievance seems to be with AI’s order for 68 Boeings, which was bumped up from a more modest proposal prior to the merger.
The revised order consists of 18 Boeing 737s and 50 other aircrafts, a mixture of 777s and Dreamliners. While the CAG has no issue with the 18 737s on order, 15 of the remaining 50 aircraft were originally intended as optional orders rather than firm purchases.
However the UPA gave the go ahead on all 50 aircraft, which has raised questions from the CAG.
According to TOI, the regulator has questioned the need for this kind of fleet size along with other issues associated with AI’s ‘downturn like’ merger with IA.
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