Demanding an inquiry into the purchase of 111 new aircraft by national carrier Air India, the Bharatiya Janata Party (BJP) has said the proposal was the root cause of the airline's financial woes.
BJP leader Kirit Somaiya today met the Comptroller and Auditor General of India, Central Vigilance Commissioner, Leader of Opposition in Rajya Sabha Arun Jaitley and Deputy Leader of Opposition in Lok Sabha Sushma Swaraj and expressed concern over the matter.
Somaiya requested protection of the interests of Air India employees and re-evaluation of the Rs 55,000-crore aircraft purchase order.
"The real reason behind the present financial crisis (of AI) is the interest burden, repayment and overhead expenses," Somaiya said in a statement issued here.
BJP held the Civil Aviation Ministry and the UPA Government responsible for the financial turmoil the state-run airline was going through.
"It is shocking that, without accepting the fact, status of the passenger load, financial/economic viability, interest and repayment burden, Air India/Ministry pushed hard for the purchase of around 111 aircraft at the cost of Rs 55,000 crore," the Opposition party added.
Somaiya said while private carriers Jet Airways and Kingfisher Airlines have reduced aircraft purchases or deferred deliveries, Air India went for more plane buy orders.
The proposal of going for 20-25 aircraft for Rs 25,000 crore resulted in the order of 111 aircraft, of which 49 have already arrived, the former MP added.
"In this week, three more aircraft are going to be included in the fleet of Air India. We demand that Ministry of Civil Aviation should reconsider buying these new aircraft. The whole burden of Rs 55,000 crore plus the interest (total Rs 67,000 crore) is on the common man," Somaiya said.
Air India has been facing rough weather lately on the financial front and has been told by Civil Aviation Minister Praful Patel to set its house in order.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
