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Air India sold 5 Boeings at ‘significantly’ low cost: CAG

140 Air India 737 MAX aircraft will be equipped with Collins’ advanced avionics

Air India sold its five Boeing planes to Etihad Airways at a “significantly” lower cost than the “indicative” market price of the aircraft, CAG said in a report tabled in Parliament today.

The government-owned Air India sold these five Boeing 777-200 LR planes to the Gulf carrier Etihad for $336.5 million ($ 67.3 million per plane) in 2013 against $86-92 million per aircraft obtained from two parties — M/s AVITAS and ASCENT, the Comptroller and Auditor General (CAG) observed in its report ‘Turnaround Plan and Financial Restructuring plan of Air India Ltd’ (AIL).
In its latest report on the airline, the CAG also observed that AIL incurred a book loss of Rs 671.07 crore on the sale of these planes and payment of Rs 324.67 crore towards interest on loans availed for procurement of these aircraft.
The aircrafts were delivered to Etihad Airways during the period from January 2014 to April 2014.
According to the CAG, two parties — Etihad Airways of UAE and German Aviation Capital, Frankfurt — responded to open tender floated by Air India in May 2013.

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He is an aviation journalist and the founder of Jetline Marvel. Dawal gained a comprehensive understanding of the commercial aviation industry.  He has worked in a range of roles for more than 9 years in the aviation and aerospace industry. He has written more than 1700 articles in the aerospace industry. When he was 19 years old, he received a national award for his general innovations and holds the patent. He completed two postgraduate degrees simultaneously, one in Aerospace and the other in Management. Additionally, he authored nearly six textbooks on aviation and aerospace tailored for students in various educational institutions. jetlinem4(at)gmail.com

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