The Comptroller and Auditor General, has called for immediate government intervention and a bailout package to fulfill the requirements of Air India. In its report tabled in Parliament on Thursday, CAG said that intervention can be in the form of equity infusion, outright grant and soft loans as per the requirements of the airline.

The Auditor general has recommended a total hands-off approach by the government with regard to the management of the national carrier. It has recommended professional management of the airlines and asked the government to provide it with a level playing field.

It also advocates for autonomy in commercial and operational decision making of the airline and said that decisions relating to allotment of routes and flight timings should be made in the interest of the airline.

The Comptroller and Auditor General has also pulled up the Ministry of Civil Aviation on the merger of the two erstwhile state-run carriers, Air India and Indian Airlines. It has termed the merger as ill-timed and not in accordance with the need of the airlines.

The report also found faults in the Ministry’s decision to acquire 111 planes for Air India through debt. It said that the aircraft acquisition has contributed to the airlines massive debt liability.