Air India Charters Ltd, the low cost subsidiary of national carrier Air India, has been indicted by the CAG for wasting Rs 405.83 crore by renewing the lease of four aircrafts in its fleet even though the planes were not required as the airline went in for the acquisition of 18 new Boeing planes.
The airline did not even have enough pilots at the time to fly the planes and was operating on loss making routes but still decided to renew the dry lease of the four aircraft, the CAG report tabled in the Rajya Sabha on Friday states.
According to the report, acquisition of 18 new aircrafts was approved by the company and the Ministry of Civil Aviation in December, 2005 to replace the aircraft on dry lease. In fact it had been decided that in case Boeing was able to commence deliveries of the aircraft earlier, the number of aircraft would be reduced accordingly.
03/08/15 Mail Today Bureau/Business Today
To Read the News in full at Source, Click the Headline
The airline did not even have enough pilots at the time to fly the planes and was operating on loss making routes but still decided to renew the dry lease of the four aircraft, the CAG report tabled in the Rajya Sabha on Friday states.
According to the report, acquisition of 18 new aircrafts was approved by the company and the Ministry of Civil Aviation in December, 2005 to replace the aircraft on dry lease. In fact it had been decided that in case Boeing was able to commence deliveries of the aircraft earlier, the number of aircraft would be reduced accordingly.
03/08/15 Mail Today Bureau/Business Today
