Lok Sabha Question No. 3004 (UNSTARRED), answered on 2017-08-03
Subject: Irregularities in Purchase of Aircraft for Air India
Ministry: CIVIL AVIATION
Asked by: BALASUBRAMANIAM SENGUTTUVAN

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA

UNSTARRED QUESTION NO: : 3004 (To be answered on the August 2017) 3rd

## [RREGULARITIES [N PURCHASE OF AIRCRAFT FOR AIR INDIA

3004.

SHRI B. SENGUTTUVAN

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## Will the Minister of CIVIL AVIATION

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be pleased to state:-

- (a) whether the Central Bureau of Investigation (CBI) has registered three FIRs relating to cheating, criminal breach of trust and abuse of official position and one preliminary enquiry o the direction of the Supreme Court based on a Public Interest Litigation against unkuown Persons in the Ministry, Air India and certain other private individuals and if $0, the details thereof;
- (c) whether the merger 0f A[ and IA further compounded the situation and caused more losses and if So, the details thereof;
- (b) whether the FIRs relate to the purchase of 1ll aircrafts for Air India (AD) and Indian Airlines (IA) from Airbus Industries and Boeing with a view to benefitting them while the national carrier was financially too stressed to afford it, which was described by the Comptroller and Auditor General of India as 2 recipe for disaster, leasing of aircrafts for IA and AI while the acquisition programme was 0n causing further loss and also to giving up profit-making international and domestic routes to favour other private airlines and if s0, the details thereof;
- (d) whether the new aircrafts which were needlessly purchased were junked as unsuitable and sold for less-than-the-market prices occasioning further loss and if So, the details thereof; and
- (e) whether the evidence gathered makes out the prima-facie culprits and traitors who betrayed the national interest and if so, the action taken by the Government in this regard?

## ANSWER

Minister of State in the Ministry of CIVIL AVIA TION

(Shri Jayant Sinha)

(a): Central Bureau of [nvestigation (CBI) has recently registered the following reports:

i.Preliminary Enquiry Registration Report -PE-DAI-2017-A-0004 dated

29.05.2017

ii.FIR No. RC-DAI-2017-A-0020 dated 29.05.2017

iv. FIR No. RC-DAR-2017-A-0022 dated 29.05.2017.

(c); Merger of Al and IA led to HR issues affecting the working of airline. Air India has been facing losses for the past many years on account of a multitude of factors which include:

(D): The FIR acquisition %f 1ll aircraft from Airbus Industries and Boeing  The erstwhile Air India (AL) had placed an order of 68 Boeing Aircraft in December, 2005 and the erstwhile Indian Airlines (IA) had placed an order for 43 Airbus Aircraft in February, 2006. These erders were mainly placed for replacing ageing fleet, improving schedule integrity etc:

1 High fuel prices iii [ncrease in competition especially from low cost carriers

ii High interest burden iv High Debt Equity Ratio

vi Adverse impact of exchange rate variation due to weakening of the Indian Rupee:

V High Airport User Charges

(d): Madam. Nos

(e): FIR has already been registered CBI regarding the alleged irregularities in procurement/purchase of aircraft: by

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