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.

After being stuck in the pipeline for years, India's ambitious initiative to design and develop a regional transport aircraft program is showing some signs of life.

NEW DELHI — India has put all defense contracts with engine maker Rolls-Royce on hold following allegations that the British 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.