‘AI spent $6m to insure 6 old planes’

National carrier Air India, which is sitting on a huge debt pile and surviving on the Rs 30,000-crore government bailout, is allegedly getting even those aircraft, which have not been in operations for some years now, insured at a cost of $6 million in a year. 

The state-run airline’s recognized pilots union, the Indian Commercial Pilots Association (ICPA), has sought an independent probe into these allegations and fix the accountability on individuals responsible for this. 

‘Six Boeing 737-200 Fs, which have been out of service for more than three years, are still being insured at $1 million each per annum or $6 million, for more than the past three years. We demand an immediate, time-bound investigation by an external agency to look into this huge financial irregularity,’ ICPA general secretary Shailender Singh said in a letter to Air India chairman Rohit Nandan. The letter is also addressed to aviation minister Ashok Gajapathy Raju and the Chief Vigilance Commissioner. Alleging that even as recent as on October 1, the insurance cover for four of these aircraft was renewed for another year at $50,000 each, the ICPA said, ‘We are also alarmed at the sharp 95 per cent drop in the insured sum of these aircraft, which till September 30 were insured for $10,00,000 and now only for $50,000.’