AIR INDIA ORDER FOR 111 BOEING & AIRBUS JETS PUSHES NATIONAL CARRIER INTO ₹50,000 CR DEBT
Profitable Routes Handed to Foreign Airlines While Bilateral Traffic Rights Surrendered
In December 2005, Civil Aviation Minister Praful Patel pushed through a colossal ₹50,000 Crore order for 111 aircraft (68 Boeing and 43 Airbus) for Air India and Indian Airlines, far beyond the airlines' commercial carrying capacity.
Simultaneously, the Civil Aviation Ministry unilaterally surrendered highly lucrative Middle Eastern and European routes to foreign Gulf carriers.
The reckless fleet purchase without business justification and the forced disastrous merger of Air India and Indian Airlines destroyed the Maharaja, turning an asset into a permanent taxpayer-funded bailout sinkhole.
📌 Key Figures & Decision Makers
- ▸ Praful Patel (Civil Aviation Minister)
- ▸ V. Subramanian
- • CAG Report No. 18 of 2011-12 on Performance Audit of Civil Aviation Ministry (CAG of India, 2011)