Fly Air India even if other airlines offer cheaper fare, Govt tells babus

Even when the Government strives to plug wasteful expenditures by plugging holes in leakages using Direct Benefit Transfer (DBT) and Aadhaar, choosing a private airline offering a cheaper ticket than Air India is a strict no-no.

The Central Government has categorically told its employees and ministers that all flight journeys must be via Air India. In a letter to all government offices, the Ministry of Civil Aviation has laid down guidelines for the relaxation to travel by airlines other than Air India. Point number 11 of the letter clearly states, “Availability of lower fare is no criteria for seeking relaxation.”

Zee Business has seen a copy of the letter.

Some exceptions, like non availability of seats on an Air India flight or no connectivity provided by the national carrier, do exist.

The letter goes on to say that the officials must provide a ‘non-availability of seats’ certificate in case there is no option but to fly a private airline.

Earlier this week, the government had said that it has saved nearly Rs 24,000 crore in Aadhaar and DBT schemes. In a series of tweets PM Modi said that about Rs 10,000 crore was saved through the used of DBT and another Rs 14,000 crore had been saved by removing 3.5 crore duplicate beneficiaries in the PAHAL scheme. 

Air India has been making staggering losses for quite some years now and the government has been pumping money in the airline to keep it afloat.

The airline, the government said, is expected to make profit this year due to better efficiencies and lower oil prices. LiveMint, in a report dated May 9, 2016 said, “Merchant banker SBI Capital Markets Ltd (SBI Cap), in consultations with ministry of civil aviation, has revised Air India’s turnaround plan (TAP) and financial restructuring plan (FRP).”

The report further said,” Air India, which is surviving on a Rs.30,000 crore government bailout package, had a debt of Rs.51,000 crore as on 31 March 2016. Its losses stood at Rs.5,490.16 crore, Rs.6,279.6 crore andRs.5,859.91 crore in 2012-13, 2013-14 and 2014-15 respectively. On Tuesday, civil aviation minister Ashok Gajapathi Raju informed Lok Sabha that the airline has turned in an operational profit of Rs.8 crore last fiscal by cutting operational expenses by almost 11%.”