All central government ministries and departments that have any pending dues to Air India have been instructed to clear these dues immediately.
Additionally, the officials of the Central Government have been asked to buy Air India tickets in cash till further notice.
Read on to find out all the details!
Govt Officials Ordered To Buy Tickets And Clear All Dues To Air India
Air India recently ended its credit facility to the government just after its disinvestment. Following this, the Union Finance Ministry has instructed all central government ministries and departments to clear their pending dues to Air India immediately.
The Centre has signed a share purchase agreement (SPA) with Tata Sons, effectively selling Air India for Rs 18,000 crore.
The SPA is a legal contract between the seller and the buyer. The deal also includes the sale of Air India Express and ground handling arm AISATS. The transaction is expected to close by the end of December 2021.
A letter to all ministries and departments under Government of India also referred to an earlier office memorandum where officials were asked to travel only with Air India if the cost is borne by the Centre. This also includes leave travel concessions (LTC).
Ministries Ordered To Buy Tickets In Cash
As per an office memorandum from Department of Expenditure under Ministry of Finance, “Recently, the Government of India has decided to disinvest Air India, the process of disinvestment of Air India and Air India Express is ongoing. Air India has stopped extending credit facility on account of purchase of air tickets. Therefore all ministries/departments are directed to clear Air India’s dues immediately. Air tickets from Air India may be purchased in cash till further instructions.”
The Finance Ministry has also noted that ministries and departments should bring these developments to the notice of their subordinate offices, institutes, etc. that are under their administrative control, for compliance.
Civil Aviation Secretary Rajiv Bansal said that the strategic disinvestment of Air India will help further its growth in a professional manner.
Part of its growth will be driven by better utilisation of its wide-body planes and upgradation of in-flight services.
Air India’s fleet comprises 43 wide-body planes, including 27 Boeing 787s. As aircrafts are better utilised, the number of flying hours it can go will increase.
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