//CAG pulls up Air-India over

CAG pulls up Air-India over

 May 20, 2006
NEW DELHI, MAY 19:  Comproller and Auditor General of India (CAG) pulled up Air-India Ltd for making losses of Rs 101.25 crore during 2002-05, due to “avoidable expenditure” incurred due to non-procurement of certain equipment.

It said the flagship carrier lost Rs 8.21 crore on outside repairs in the past three years because it has not acquired some equipment despite fund availability. Besides, the company carried out a number of aircraft checks outside the country at a cost of Rs 57.37 crore during the same period in spite of having in-house capabilities.

According to CAG, though various checks were carried out as per directorate general of civil aviation’s norms, the time taken for completion of the checks surpassed the planned number of days, which resulted in loss of flying hours valued at Rs 93.04 crore.

But there is some good news as well. The percentage of flight cancellations by the air carrier has come down to 0.029% in winter 2004 from 1.18% in winter 2002. Reschedulings have also decreased by 6.2%, to 3.02% in winter 2004 from 9.22% in winter 2002.