Investigations on Air India-Indian Airlines merger

The CBI is investigating some major decisions made on Air India when the United Progressive Alliance was in power, including the merger of Air India and Indian Airlines, purchase of 111 airliners by the national carriers and giving away of profitable routes to private (rival) airlines. In a statement, the CBI said it started the probe following orders from the Supreme Court. Air India had placed an order for 111 aircraft: 68 from Boeing and the balance from Airbus. According to the statement, the purchase for about Rs 70,000 crore caused an “alleged financial loss” to the “already stressed” national carriers. The third FIR, filed against unknown officials of the civil aviation ministry and Air India for giving up profit making routes, said this had caused a huge loss to the national carrier. The agency is making an inquiry into the role of unknown officials in the civil aviation ministry in the 2007 deal to merge the two airlines, allegedly causing a loss of Rs 10,000 crore. Air India and Indian Airlines were merged to create Air India despite opposition from both state run airlines.