India has put on hold all defense contracts with Rolls-Royce following allegations that the company paid bribes to win lucrative contracts to supply Hawk advanced trainer jet engines to state-run Hindustan Aeronautics Ltd. (HAL), a defense ministry official says. Not only is the decision a serious blow to the aircraft engine-maker, but it also threatens to delay upcoming Indian air force purchases and impact other existing programs.
When Star Alliance CEO Mark Schwab announced last December that Air India had been accepted as a future member of the group, some in the country thought this could signal the turning point that the beleaguered airline had been waiting for. However, the U.S. downgrade of India's aviation safety rating in January underscored just how bumpy the road to normalcy remains.
