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Rediff.com  » Business » BJP seeks probe into Air India's aircraft buy

BJP seeks probe into Air India's aircraft buy

Source: PTI
July 01, 2009 10:30 IST
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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 on Wednesday 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 (Rs 550 billion) 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.

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 said.

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