I'm not sure we know if the allegations against Mascarenhas are indeed true. The investigations conducted by the Aviation ministry are tainted by the fact that they were done by individuals who are not exactly "neutral" in their allegiances. (Read: Govt. Cronies and sycophants). So, until an independent judiciary finds the Ex-MD guilty, lets give him the benefit of the doubt.
(and now I blab on about the Govt of India - those of you who think its the cats whiskers, can ignore this)
AI will remain stymied if it continues to be a Govt of India run airline. Its been downhill for the airline ever since the heydays of the early 70s, when JRD Tata was in control and Mrs Gandhi did not interfere with the airline because of the personal and political rapport she shared with him. However, AI started going downhill during the Desai Govt that pushed its alcohol prohibition policy on the carrier due to the idiotic ideology of a senile PM, and ransacked the airline by imposing its goons at every level of management. It basically just flopped around in the 80s while the entire airline industry was going through enormous change and has failed to take advantage of the huge emergent West bound traffic in the 90s. The fact that AI has a relatively decent standard of inflight service is either a miracle or the hard work against all odds by a few dedicated folks.
There is precious little that the Govt of India can do well - any govt, irrespective of party affiliations. This is a government that trumpets its so-called successes in launching missiles while 800 million + of its people have no access to sanitation, potable water, or a decent education. So, why should it understand the intricacies of running an airline if it fails to understand the import of millions of people defecating in the streets?
Atheism is Myth Understood.