Govt to reconsider Dreamliner deal

The government may rethink its decision to acquire 27 Dreamliner aircraft for Air India from US manufacturer Boeing owing to growing concerns about financing of the deal,said top government sources.

“We may reconsider the purchase of these aircraft in accordance with the carrier’s current financial health. The airline has no money and is under huge debt,” civil aviation minister Vayalar Ravi told The Indian Express. He said that the decision will be taken at the highest level of the government. Air India had ordered 27 Dreamliners in 2005,as part of its Rs 30,000 crore,68 aircraft acquisition programme. The carrier’s aircraft acquisition was questioned by the Comptroller and Auditor General (CAG) in the latest report submitted on Thursday that deemed it “risky” and based upon unrealistic assumptions.

The delivery of these aircraft has been delayed by over two years,and Boeing had recently announced that the first Dreamliner will be delivered in December. The carrier may have to bear an additional burden of Rs 14,000 crore debt to finance this purchase.