The state-run airline's recognised pilots union, the Indian Commercial Pilots Association (ICPA), has sought an independent probe into these allegations and fix the accountability on individuals those responsible.
"Six Boeing 737-200 Fs, which have been out of service for more than three years, were still being insured at USD 1 million each per annum or USD 6 million, for more than the past three years. We demand an immediate, time-bound investigation by an external agency to look into this huge financial irregularity," ICPA General Secretary Shailender Singh said in a letter to Air India Chairman Rohit Nandan.
"The premium that is being paid on each of these aircraft was USD 145 last year and USD 90 this year," the spokesperson said.
It is highly regrettable that a responsible association like ICPA is making such baseless allegations which sadly reflects on their credibility and understanding of the aviation business, he added.
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Referring to ICPA's another allegation regarding a contract with private logistic company Gati, the spokesman said Air India has terminated the contract with the firm due to irregularity of payments by Gati to Air India.
The ICPA's letter was also addressed to Aviation Minister Ashok Gajapathy Raju and the Chief Vigilance Commissioner.