Tuesday, September 16, 2014

Systems failure in Air India

What do some senior bureaucrats do when they hang up their boots? Like Vinod Rai, former Comptroller and Auditor General, they assign to themselves the task of pointing out the warts in a system they lived with for decades. (Whether they should have done so earlier, or rather, been permitted by the system to do so while in service, is a moot point.)

In his book, Not Just An Accountant, he talks about how one-time aviation minister Praful Patel “nudged” Air India to take a decision to acquire aircraft.

Rai is certainly not the first to point to shenanigans in the workings of this airline. Jitendra Bhargava, who spent close to 30 years in Air India, has also alluded to interference by various government functionaries in the Maharaja’s functioning.

Rai talks about a board meeting called in Mumbai early in 2004 to take a decision on Air India acquiring aircraft, something the airline had not done in more than two decades. As the board members walked in they were handed additional agenda items, including one which said that the number of aircraft Air India wished to acquire was to be increased from under 30 to 58.

Some members protested, saying they were not against ordering more aircraft but wanted an analysis of the airline’s financial capacity to bear the same. They were, however, told to clear the proposal without expressing doubts. The meeting was adjourned without a decision.
15/09/14 Ashwini Phadnis/Business Line
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