Airline Industry Review

The U.S’ role in Air India’s 2005 Boeing order

Criticism of loss-making Air India’s large Boeing order in 2005 came to light this week with a report by the Indian Auditor General. And now Aviation Week is reporting about a U.S Diplomatic cable leaked by Wikileaks that reveals some new information about the U.S government’s role in the order. Well worth a read.

Personally, in my opinion, what the Indian government should be doing is not a blame game – but agreeing to the commercial sense and finding a solution for Air India. The government might be considering AI as a proud national asset to have – but what exactly is there to be proud about a loss making asset? The reasons for AI’s losses are not with the orders or the expanding Gulf carriers, but with the airline and its huge workforce itself.

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