In the first meeting of the group of ministers (GoM) to decide on a Rs 5,000-crore bailout plan for National Aviation Company of India Ltd (Nacil) or Air India, home minister P Chidambaram took the civil aviation ministry to task by demanding accountability for the mess the company has landed itself in.

Finance minister Pranab Mukherjee, who chairs the GoM, let his predecessor do the tough talk at the GoM meeting. Also in attendance were petroleum minister Murli Deora, civil aviation minister Praful Patel and Planning Commission deputy chairman Montek Singh Ahluwalia. Chidambaram is said to have come down heavily on the performance of past CMDs and demanded accountability, sources present at the meeting said.

Nacil, resulting from the merger of Air India and Indian Airlines on March 30, 2007, has accumulated losses to the tune of Rs 7,200 crore for the year-ending March 2009. In 2007-08, Nacil’s losses stood at Rs 2,226 crore. Just before the merger, Indian Airlines posted losses of Rs 240 crore, while Air India recorded a profit of Rs 541 crore in 2006-07. Sources said Chidambaram made three crisp observations in the first meeting of the GoM, which was formed to chalk out a roadmap for Nacil. Besides demanding an explanation on the role of past CMDs, the home minister sought to know the progress on synergies that were promised when the two carriers were merged. The company and the civil aviation ministry had projected savings of Rs 600 crore post the merger based on a report prepared by consulting firm Accenture.

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