Airliners-India.com

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Case history:
AI leased 2 A310-300's on short-term leases. These leases were approved even though it was clear that the flights operated with these aircraft would make operational losses due to high lease costs. The argument at that time was that it was a short term move to retain market share and overcome "capacity shortfall" (Familiar argument?).

Later on 2 L1011-500's were also taken on lease form the same company on similar unfavorable terms. Terms which were against AI's interests were introduced into the contract obviously with the connvance of AI management. Apart from high cost, these leases were also affecting safety of flight operations since Caribjet was in charge of engineering. Caribjet used regular flying crew for conducting safety checks instead of qualified engineers.

Despite the known issues like high cost and poor maintenance: AI mgmt went ahead leased 2 moer A310-300's. Until some NGO's active in monitoring corruption got wind of the deal. The AI mgmt hurriedly scrapped the deal but then it became public that there was no exit-clause which meant AI had to pay Caribjet damages to the tune of 302 crores plus legal expenses amounting to over 10 crores!

Ten years later, the leasing game scam is still very much on in the form of ad-hoc leases on very strange terms for 777's, 767's and 757's.

Detailed llink:

http://cag.nic.in/reports/commercial/2000_book4/chapter3.htm
Air India Limited (AI) concluded two wet leasing agreements between December 1994 and December 1997. The total loss incurred by Air India from its wet lease operations during the period December 1994 to December 1997 amounted to Rs. 321.92 crore. Wet lease operations accounted for 45.4% of total losses of Air India between 1994-95 to 1997-98.

Wet Lease Contract was awarded in such a manner as to entail the highest loss for AI among the available options. Award of wet lease contract for the period from December 1995 to December 1997 to the highest loss option was not based on transparent reasons.

AI awarded softer contract terms to one of the lessors as compared to the other lessor, without apparent reasons.

AI made extra payment of Rs. 1.32 crore to Caribjet due to insertion of two special clauses in their contract agreement without any apparent compulsion.

The Management terminated (4 September 1996) the wet lease agreement with Caribjet due to “several serious violations of established technical and operating procedures by Caribjet”. The Board in its 24th Meeting held on 24 September 1996 endorsed the Management’s decision. Following termination, Caribjet Inc. instituted (January 1997) arbitration proceedings at London and claimed a total amount of US$ 72.69 million (approximately Rs. 302 crore) towards damages excluding interest. The Arbitration Tribunal decided (19 January 1999) the case in favour of Caribjet and held that Air India wrongfully terminated the Wet Lease. Meanwhile AI had already incurred expenses to the tune of Rs.7.40 crore on arbitration proceedings up to November 1998. Air India Board decided (6 February 1999) to go into appeal against the award of the Tribunal in London High Court, which was still pending (May 1999).

Some related links:
http://www.thehindubusinessline.com/2003/02/05/stories/2003020502530500.htm

http://economictimes.indiatimes.com/articleshow/381521.cms

http://www.expressindia.com/ie/daily/19991130/ige30009.html

http://www.india-today.com/itoday/20010604/business.shtml

http://www.telegraphindia.com/1030205/asp/nation/story_1640516.asp
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COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

Interesting note with regard to something we found in the investigation into the 767 lease: It appears that Flyglobespan leased out 2 767's to AI and then leased IN two 767s from Neos. And something very strange about these lease clauses framed for Air India!

Another discovery: AI has leased in atleast 4 A310-300 aircraft EVX, EVF, EVW and EVE have been leased in from a company based in Grand Cayman with an very interesting past history! Things are really getting interesting!

@KCM: Are u interested in doing some snooping? Wink

Please check your PM!
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777-237LR · Member Joined: 19 Dec 2006 Posts: 140

It was Ghulam Nabhi Azad the then Civil Aviation who pocketed the biggest share of the loot.

777-237LR · Member Joined: 19 Dec 2006 Posts: 140

It was Ghulam Nabhi Azad the Civil Avation Minister at the time of the Caribjet scam who pocketed the biggest share of the loot.

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

maut3000 · Member Joined: 14 Mar 2007 Posts: 160 Location: Mumbai

COUGAR · Member Joined: 01 Jan 2007 Posts: 986 Location: Bangalore

From teh same thread on pprune:

The 767-300ER operated by Neos seem to be 280 seat unique class which i would believe to be single class with IFE so maybe it is planned to remove a few rows to offer seperate classes, dont suppose they are offering Neos catering though.
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Birendra · Member Joined: 15 Feb 2007 Posts: 1411

I suggest we all get to the bottom of this....

These politicians are taking our country and our airlines down.....

Cougar, we salute thee Very Happy

superman · Member Joined: 22 Mar 2007 Posts: 42 Location: USA

Good job on this Cougar..

This is just awful. There is no end to the greed and manipulative practices in our babudom and govt. circles. And the biggest shame is that it involves the country's flagship international carrier. If it continues like this in the future, passengers worldwide will start avoiding AI like a plague, no matter if they buy any new mid/long range aircraft....
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ameya · Posted: Mon May 14, 2007 8:46 pm Post subject:

AI has leased 2 a/c from some airline
It operates it with just small font air india written near the doors. The tails of the a/c have original a/c marking...

All those who were there at the A380 sighting in Mumbai must have seen that a/c

I have pics...

HAWK21M · Posted: Mon May 14, 2007 9:47 pm Post subject:

vivekman · Member Joined: 26 Dec 2006 Posts: 1897 Location: BOM

Yes, it is indeed the AI 757, TC-GLA. That a/c was parked at the terminal on both days around the time of the A380 arrival/departure.

ameya · Posted: Tue May 15, 2007 12:17 pm Post subject:

yes..

which airline is that?

HAWK21M · Posted: Tue May 15, 2007 12:21 pm Post subject:

http://www.airliners.net/open.file/1145316/M/

regds
MEL
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Boeing7xx · Member Joined: 23 Dec 2006 Posts: 477 Location: WSSS

Isn't it more like one 757, two 767, two/three 310s and I hear that AI is scouting for a couple of 744s.

karatecatman · Guest

Don;t fall out of your chair.

Air India is revamping its ground handling contact at LA.

It's schedule contines as an India-Frankfurt-LA operation with a 747 Combi B744-E J43 Y253 Pallets:13 14

It says that aircraft schedule is subject to change and the route can be operated with standby aircraft:

B747-300 - J32 Y261 Pallets: 12 14
B747-400 F12 J26 Y385 Pallets: 04 20
B777-200 F12 J49 Y211 Pallets: 04 18
This seems okay.

But Air India also lists .... hold your breath ... Shocked

B747-200 - J20 Y376 Pallets: 04 18

Cross-checked with Nariman Point and the contract requires that the agency quote for even the Boeing 747-200!!!! Rolling Eyes

Air India's LA manager Lalit Kapur has also replied by email to say this info is right!!! Shocked

Is Air India planning to operate "Emperor Samudra Gupta" again? Or another Nevada Desert leasing scam?

What next? Nine-day flights with Dakotas?

777-237LR · Member Joined: 19 Dec 2006 Posts: 140

There are no emperors surviving, all of them have been broken up.
Does look like a Nevada Desert scam, now that Pee Pee has tasted
blood. He could be deliberately stalling the 77L delivery - new colours
and what not.

Nimish · Posted: Tue May 15, 2007 3:21 pm Post subject:

Nimish · Posted: Tue May 15, 2007 3:30 pm Post subject:

karatecatman · Guest

In the case of Nariman Point, I repeated B747-200 carefully and got an affirmative. When I asked why, just got a reply to say the info is right. Phone was banged down after that.

Mr. K's email did not answer the pt about why AI is going back in time to get the 742.

For a change it was me who was left speechless!

... something not okay here.

HAWK21M · Posted: Tue May 15, 2007 6:41 pm Post subject:

AI B742 again wow.Thats news.
regds
MEL
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JumboJet · Posted: Wed May 16, 2007 5:46 pm Post subject:

If i remember clearly the AI growth has been stalled by PP.

A scam suggested that he was the one who went for all the seat change et all. Well when it could be done by aviajet for about 5 lakh per seat, he opted for about 12 lakh per seat......wonder why.

Also if AI competes, would not PP and his friends see it as a threat and with PP in command, what a better way to thwart competetion than to stall it.

In business circles, the biggest paymasters are the govt's and private players are taken with a pinch of salt......because for govt's money is not the issue, who should take the bribe IS Rolling Eyes

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Birendra · Member Joined: 15 Feb 2007 Posts: 1411

Sorry to ask but are they going in for new B747 200 because Boeing lists them as out of production, or WHAT, with AI im always confused Shocked

HAWK21M · Posted: Fri May 18, 2007 12:04 pm Post subject:

Its more cheaper to Cargo convert an older Airframe.
regds
MEL
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Birendra · Member Joined: 15 Feb 2007 Posts: 1411

HAWK21M · Posted: Fri May 18, 2007 2:00 pm Post subject:

Ready made Freighters are not always available & the Manufactured ones are not worth the Expense to carry Cargo.

If I need to carry a sack of potatoes from Point A to B I can use a Maruti 800 & don't need a Merc.
regds
MEL
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Think of the Brighter side !!!