Authorities close probe into Air India B777 lease deals

After a seven-year investigation, India's Central Bureau of Investigation has discontinued its inquiries into alleged irregularities in leasing aircraft at Air India. The probe found there was no evidence of any wrongdoing. In 2006, Air India dry-leased four B777s for five years when it was already expecting delivery of its own B777s from 2007 onwards. The extra seats at a time when the airline was already experiencing low loads created a capacity glut. Consequently, five B777s and five B737s remained on the ground between 2007 and 2009, costing the airline INR8.4b rupees (USD$101m). Investigators alleged the 2006 leases went ahead to benefit "private parties." The United Progressive Alliance was in government when the lease contracts were signed, and they were finalised by the Ministry of Civil Aviation, then under minister Praful Patel, and the National Aviation Corporation of India Limited (NACIA), an entity established after the merger of Air India and Indian Airlines. India's Supreme Court tasked the CBI to investigate the matter in 2017 after allegations surfaced that Patel had abused his position. The lease decision was taken "in conspiracy with other unknown persons on extraneous considerations" that resulted in "pecuniary benefit" to private companies and consequent "loss to the government exchequer," the initial allegations said. ch-aviation notes that the authorities have never charged Patel with any offences. <br/>