
Air India crash report: Probe tracks engine switch movement; no immediate action for Boeing or GE
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India's Aircraft Accident Investigation Bureau (AAIB) has said there is no immediate need for action by Boeing or GE following last month's Air India crash in Ahmedabad that killed 260 people, the worst aviation disaster globally in over a decade.'At this stage of investigation, there are no recommended actions to Boeing 787-8 and/or GE GEnx-1B engine operators and manufacturers,' the AAIB said in its preliminary report released Saturday.The initial findings noted that the aircraft's engine fuel cutoff switches moved from 'cutoff' to 'run' within seconds of each other just before the crash. The bureau has not linked this sequence directly to the cause of the crash.The AAIB, under the Ministry of Civil Aviation, is leading the investigation. It is working with aircraft and engine makers to examine technical, operational, and human elements behind the fatal event. A final report will be issued after further analysis of flight data and cockpit voice recordings.In a tragic first for Boeing's 787 Dreamliner program, an Air India flight operating from Ahmedabad to London Gatwick crashed shortly after take-off on June 12, killing 260 people. The aircraft, a Boeing 787-8, struck a medical hostel complex near the airport. Among the 241 people onboard, only one passenger survived. Nineteen others on the ground were also killed.The fatal incident marks the first-ever hull loss — a technical term for the total destruction of an aircraft — involving the Boeing 787, which is one of the world's best-selling wide-body jets.

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Hindustan Times
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- Hindustan Times
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Business Standard
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Business Standard
5 hours ago
- Business Standard
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It's also interesting that the home minister, who is the establishment's go-to man for knotty political problems, has been put in charge. Shah has always been Modi's enforcer, and has never run an economic ministry; but he has a reputation for getting things done. For example, the government tried and failed for years to privatize state-owned Air India, and only managed when Shah oversaw the process. It had nothing to do with his official portfolio — he just had the political stature to push through difficult changes. The bad news, however, is that the GST reform doesn't need those instincts. It would benefit from less politics and more economics. Partisan compromises caused the system to underperform in the first place. Economists wanted India's mess of indirect taxes to be replaced with a single, national value-added tax that would apply to all goods and services across the country and be evaluated by a single bureaucracy. Unfortunately, the constitution assigns state governments the right to impose indirect taxes, and not the federal authorities. Officials in New Delhi eventually had to work out a messy compromise to get state governments on board. India doesn't have one GST, but three — one for the central government, one for the states, and one for in-between transactions. Each of these has its own officials, tax forms, and filing requirements. Worse, instead of a single simple rate, the GST eventually went into effect with four, five, or even more slabs depending on what you included. Instead of applying to all goods and services, some big-ticket items — fuel, alcohol and electricity among them — were excluded. As a result, the government never collected as much money from the new system as it hoped. It wasn't until last year that actual indirect tax collections crossed 6 per cent of GDP, the level they had been when the GST was introduced. For businesses, some things have gotten easier — exporters get quick refunds on the taxes they pay, for example. But fraud has also exploded. Almost 10 per cent of the tax that's collected is fraudulently claimed as refunds. Sometimes traders buy and submit counterfeit invoices for inputs that entitle them to tax credits. Other firms turn in bills that show goods being transferred from one company to another, their value being inflated every time — except these are all shell companies, and the goods in question don't exist. They then claim input tax credits on these high, imaginary transactions. On one occasion, fraudsters registered 246 separate dummy firms that investigators had to untangle. The multiple different tiers don't help, either. Fraudsters can also mislabel goods to evade taxes. The honest have to deal with absurd acts of categorization. Last year, for example, officials 'clarified' that sales of popcorn would be charged at a 5 per cent rate, unless it was sold in a pre-labelled package, when it would be charged at 12 per cent — except if it was caramel flavored, in which case the rate was 18 per cent. The economist who had served as Modi's advisor at the time the GST was introduced described this as a 'national tragedy, violating the spirit of the Good and Simple Tax the GST was meant to be.' The often-confusing nature of the system, as well as the poor digital infrastructure set up for payments and reporting, mean that smaller companies suffer disproportionately. Opposition politicians often claim that onerous GST requirements are driving small enterprises out of business. Not all big business is happy, either. Multinational companies can run afoul of complicated definitions of what counts as an exported service. Infosys Ltd. and some foreign airlines operating in India were hit with tax demands for billions of dollars last year based on an unusual interpretation of the code. (Infosys said in June that the demand had been withdrawn.) The deviations from economic common sense that have marred the implementation of the GST are a consequence of political compromises. State governments are given a say in rates, and nobody has an incentive to simplify taxes, only to win populist medals by reducing the tax applicable to one good or another. At the very least, one or two of the current tax bands need to be eliminated. Ideally, the entire system should be overhauled, and exemptions, such as for petroleum products, minimized. We should end up with a single tax, applied through a single form, and at a single rate for all transactions. If Shah listens to the economists, that's what he will push through. But the chances are that he will listen to the politicians instead.