India’s Probe into Air India Boeing 777 Lease Deals Concludes Without Findings of Wrongdoing

The Central Bureau of Investigation (CBI) in India has officially ended its seven-year-long investigation into the leasing of aircraft by Air India, finding no evidence of misconduct or irregularities. This inquiry focused on the dry-leasing of four Boeing 777 aircraft in 2006, a decision questioned due to the timing ahead of the airline’s scheduled receipt of its own B777s starting in 2007. The investigation scrutinized whether this move, which led to a surplus of capacity and resulted in financial losses for the carrier, was made to benefit private entities improperly.

The probe initially targeted lease agreements made during the tenure of the United Progressive Alliance government, with the Ministry of Civil Aviation and the National Aviation Corporation of India Limited (NACIL) — formed from the merger of Air India and Indian Airlines — at the helm. Allegations had suggested that the leasing decisions were influenced by extraneous considerations, potentially leading to financial advantages for private parties and losses for the government.

However, after extensive scrutiny, the CBI has concluded that there is no basis for these allegations, thereby exonerating all parties involved from any wrongdoing. This decision comes despite initial claims suggesting potential misuse of authority by officials to favor private interests, concerns over the readiness of pilots for the newly leased aircraft, and the consequent financial strain on Air India.

The closure of this investigation removes a cloud of suspicion that had lingered over the decisions made by Air India’s management and the Ministry of Civil Aviation at the time. Notably, Praful Patel, the Civil Aviation Minister during the period in question, had been a focal point of the inquiry but was never formally charged with any offenses. The conclusion of this probe coincides with Patel’s nomination as a candidate for the Rajya Sabha polls by the National Congress Party (Ajit Pawar faction) in 2024.

The CBI’s decision to halt the investigation was announced without detailed justification, leaving some questions unanswered. Nonetheless, the formal closure report was filed in a special court in Delhi on March 19, with a subsequent hearing scheduled for April 15 to discuss the arguments for concluding the probe. This development marks the end of a long-standing inquiry into one of India’s flagship carriers, clearing the way for Air India to move forward without the shadow of past lease agreements influencing its operational and financial planning.