The civil aviation ministry feels Air India lacks the money to pay for its Boeing 787 aircraft deal.
"The order has been delayed for three years, during which bank interest on the loan has to be paid. The airline is under huge debt and does not have money,” said civil aviation minister Vayalar Ravi. Adding: “I am not saying it is cancelled, nor do I say that it is in process.”
In 2005, AI had ordered 27 Boeing 787 Dreamliners, making the government carrier one of the launch customers. This was part of the 111 aircraft worth Rs 46,000 crore it had ordered.
The carrier owes Rs 42,000 crore and has accumulated losses of Rs 20,000 crore. Delivery is expected to start from the end of this calendar year.
Recently, the Union comptroller and auditor general said the ministry’s decision to approve the 11-plane purchase was "a recipe for disaster".
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