The order was given last week and under British laws there is no likelihood for an appeal by Air India, official sources said here today. The government and Air India are keeping their fingers crossed hoping that the final order by LCIA will have something in their favour.

Air India had wet leased two L-1011 and one A310 aircraft from Caribjet in December 1995 and January 1996 but the contract was cancelled in September 1996 on the grounds that Carbijet had violated the safety requirements of the Directorate General of Civil Aviation.

Concern was also voiced by DGCA and other authorities of the safety of operations of Carbijet. Caribjet claimed damages of $ 80.6 million for the termination of the contract whereas Air India made a counter claimof $ 136 million towards loss of future profits and market share.

Sources said when the case was registered with LCIA, a three-member committee was constituted by the then managing director to prepare a case to plead before the court. But later this committee was replaced, a move questioned by the government. Also, top officials of Air India had not appeared before LCIA, the sources said.

Caribjet based their argument on the statement by a senior Air India official that the airline's financial health was not good. The West Indies-based leasing company had contested that there had been no flight safety violations by it and Air India had terminated the contract because of financial and commercial considerations.