The investigation into the Air India disaster has hit a bureaucratic snag, with officials demanding more time to sift through the wreckage. In a move that reeks of fiscal inefficiency, the inquiry has been expanded to include UK aviation experts, presumably at great expense to the taxpayer. One wonders if this is a prudent allocation of resources or just another example of government bloat.
The market, ever sceptical, will be watching the cost overruns on this inquiry with bated breath. Every additional day of investigation adds to the bottom line, and let's not forget the opportunity cost of diverting these experts from other pressing matters. The longer this drags on, the more it erodes public confidence in both the aviation industry and the government's ability to manage a crisis.
Gilt yields may yet reflect this uncertainty if the government continues to throw money at the problem without clear accountability. The question remains: will this inquiry deliver value for money, or is it just another black hole in the public finances?
