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PAC grills top Civil Aviation Ministry officials
The Public Accounts Committee, headed by Murli Manohar Joshi, on Wednesday grilled top officials of the Civil Aviation ministry over increasing losses in Air India, matters emerging out of mergers and acquisitions, routes and other issues.
The ministry team, headed by Secretary Nasim Zaidi, had a tough time during the discussions, sources said.
The meeting started with a presentation by the ministry officials over the state of affairs in Air India.
This was followed by questions, mainly from the opposition members, on the CAG report on civil aviation which said that Air India had run a massive debt liability of Rs 38,423 crore by March 2011, the sources said.
A member alleged that these losses would touch Rs 50,000 crore by the end of this financial year.
The CAG report has come hard on the ministry over the decision to acquire 111 planes for Air India and maintained that the move was “risky” and aircraft acquisition had “contributed predominantly” to the airline’s massive debt.
The routes and destinations to which Air India planes were flying and its impact on profits were also discussed in the PAC meeting, the sources said.
Another member insisted that there were contradictions in the CAG report as at one place it states that there was “undue delay” in taking the decision on buying the 111 planes while at another place it says this was done in haste.
This was the first appearance of the civil aviation ministry officials before this PAC and they have been asked to send replies to the questions in writing by January 25.
The CAG report on Civil Aviation was tabled in Parliament last September.
The Government auditor had described the merger of Air India and Indian Airlines as “ill-timed” and said the exercise was undertaken “strangely from the top (rather than by the perceived needs of both these airlines), with inadequate validation of the financial benefits”.
CAG had recommended, among other measures, “a total hands-off approach (by the Government) with regard to the management of the airline”.
In its report, the CAG also took the Civil Aviation Ministry to task for liberalising the bilateral air traffic entitlements with other countries in a manner which “did not provide a level playing field to AI (and to a lesser extent other Indian private airlines)”.
The report dealt with several aspects of the ailing national carrier’s losses, fleet acquisition, merger, huge debt burden, delay in joining the global airline grouping Star Alliance and its financial and operational performance.
The Public Accounts Committee, headed by Murli Manohar Joshi, on Wednesday grilled top officials of the Civil Aviation ministry over increasing losses in Air India, matters emerging out of mergers and acquisitions, routes and other issues.
The ministry team, headed by Secretary Nasim Zaidi, had a tough time during the discussions, sources said.
The meeting started with a presentation by the ministry officials over the state of affairs in Air India.
This was followed by questions, mainly from the opposition members, on the CAG report on civil aviation which said that Air India had run a massive debt liability of Rs 38,423 crore by March 2011, the sources said.
A member alleged that these losses would touch Rs 50,000 crore by the end of this financial year.
The CAG report has come hard on the ministry over the decision to acquire 111 planes for Air India and maintained that the move was “risky” and aircraft acquisition had “contributed predominantly” to the airline’s massive debt.
The routes and destinations to which Air India planes were flying and its impact on profits were also discussed in the PAC meeting, the sources said.
Another member insisted that there were contradictions in the CAG report as at one place it states that there was “undue delay” in taking the decision on buying the 111 planes while at another place it says this was done in haste.
This was the first appearance of the civil aviation ministry officials before this PAC and they have been asked to send replies to the questions in writing by January 25.
The CAG report on Civil Aviation was tabled in Parliament last September.
The Government auditor had described the merger of Air India and Indian Airlines as “ill-timed” and said the exercise was undertaken “strangely from the top (rather than by the perceived needs of both these airlines), with inadequate validation of the financial benefits”.
CAG had recommended, among other measures, “a total hands-off approach (by the Government) with regard to the management of the airline”.
In its report, the CAG also took the Civil Aviation Ministry to task for liberalising the bilateral air traffic entitlements with other countries in a manner which “did not provide a level playing field to AI (and to a lesser extent other Indian private airlines)”.
The report dealt with several aspects of the ailing national carrier’s losses, fleet acquisition, merger, huge debt burden, delay in joining the global airline grouping Star Alliance and its financial and operational performance.
