Recently, we heard some news that the government and the aviation ministry purchased planes worth $11 billion by state-owned Air India. But, soon the action faced criticism from the Comptroller and Auditor General, who stated in its CAG report that the government and the aviation ministry should not have taken such action when it couldn’t afford to do so.

Above criticism has been cited in the report, which was issued on the carrier for the period 2002-10, most of which was under the administration of Civil Aviation Minister Mr. Praful Patel, whose department was shifted in January after his six-year services and he was later appointed as the cabinet minister for heavy industries.

After the above action, Air India went under heavy debts of approximately Rs. 40,000 Crore in its books, and just to seek some help from the exchequer, the carrier now stands in the middle of a government-backed rescue program.

Moreover, there are also reports that the airlines had made record losses of approximately $1 billion in both of the last two fiscal years respectively, and the current financial position of same has forced it to default on payments that it owes to employees, oil companies and airports.