September 8, 2011 1:40 PM

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CAG calls for immediate govt intervention to fulfill requirements of Air India

The Comptroller and Auditor General, CAG report has called for immediate government intervention and a bailout package to fulfill the requirements of Air India. In its report tabled in the Lok Sabha today, the CAG says that intervention can be in the form of equity infusion, outright grant and soft loans as per the requirements of the airline.It has recommended professional management of the national carrier and asked the government to provide it with a level playing field. The CAG also advocates for autonomy in commercial and operational decision making of the airline. It states that decisions relating to allotment of routes and flight timings should be made in the interest of the airline.It has pulled up the Ministry of Civil Aviation for delay in payments of Air India services availed by the VVIPs and other Government officials. It has also called for transparency in the process of appointment of the Board of Directors and a critical assessment of its profitable sectors. The report states that the airline is in a crisis situation and payment of salaries and air traffic fuels is becoming increasingly difficult.

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