CAG: Why Nacil was a non-starter

The main objectives of the performance audit of civil aviation were to ascertain (1) whether the acquisition of aircraft by erstwhile Air India (AIL) and Indian Airlines (IAL) was planned and implemented with due regard to economy, efficiency and accepted norms of financial propriety, (2) whether their merger into NACIL was properly planned and implemented, (3) the impact of the liberalised policy of GOI on grant of air traffic rights to other countries through Air Service/bilateral agreements and permitting Indian private carriers to fly international routes, (4) the main reasons for the poor financial and operational performance of the pre-merger airlines and the merged entity, and (5) whether MoCA exercised its oversight role effectively.

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