NEW DELHI: Crucial correspondence between Indian Airlines and the Ministry of Civil Aviation points to Mr. Rajiv Gandhi as the man behind the Airbus deal, The CBI lodged a case of cheating and corruption in this deal on Thursday.
Correspondence referring to Mr. Gandhi’s role was entered in file No AV 18018/14/84AC according to sources in the Ministry. This file is now untraceable the sources said. But some of the correspondence has been retrieved from records elsewhere.
Senior officials of the Civil Aviation ministry have formed CBI officers that Mr. Gandhi visited Paris in 1985 when he also attended the airshow. He saw a simulated cockpit of the A320 aircraft of Airbus Industries who seemed to have established contact with him.
After his visit officials reportedly told the CBI a spokesman of the Airbus Industries confidently announced that a contract was going to be signed with India for Airbus. The officials said this visit seemed to have speeded up the decision to abandon the deal for purchase of the Boeing 757.
Focus shifted to the Airbus within three days in mid November 1984 just two weeks after Gandhi had become Prime Minister.
A committee headed by Air Chief Marshal Dilbagh Singh had recommended the Boeing 757 200 for Indian Airlines. The recommendation was accepted and a letter of intent placed with Boeing. The A 320 had not been launched then.
A presentation on behalf of Airbus Industries was moved on November 14, 1984. In what is now the missing file Indian Airlines was asked for detailed comments by November 17. The next day Mr R Prasad then economic adviser to the managing director of Indian Airlines wrote to say Airbus Industries made a formal proposal which he said was expected ina few days.
But on November 16, Mr. S.K Arora, undersecretary in the Ministry of Civil Aviation wrote to the managing director of the airlines, Capt. K. Chadha in a letter marked “most immediate” that the comments of Indian Airlines on the Airbus proposal must be furnished at the earliest so that they could be sent to the PMs office.
Though Mr. Prasad had said that a formal proposal was still to be received from Airbus, a presentation had in fact been received by Capt. Chadha to have the proposal examined by Mr. R.M.H Jung deputy manager, Planning Mr. Jung refused to do this sources said because he was on the committee that had recommended Boeing Mr Jung refused to do the evaluation even though he was told there were orders from above sources said. He later resigned from Indian Airlines.
Airport favorable to Airbus A320 was then prepared by Capt. Chadha and his economic adviser, Mr. R Prasad though the deputy managing director of Planning, Mr. B.K Bhasin.
The proposal in favor of A320 was put up to the Public Investment Board on August 30, 1985.
Article extracted from this publication >> April 6, 1990
