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Govt employees no longer bound to fly by Air India
The Union government sold ailing Air India to Tata Sons last month after several failed attempts and extension of deadlines
The Centre will end Air India’s monopoly over flying millions of government employees after its privatisation, although large part of the employees’ ticketing requirements will continue to be handled by three state-owned companies.
The companies will likely earn agency commissions and ticketing charges from the huge pool of government employees, estimated to run into a few million.
On November 2, department of investment and public asset management secretary Tuhin Kanta Panda said it would no longer be mandatory for government employees to travel by Air India after its privatisation.
Air India, too, has stopped offering ministries credit for the purchase of air tickets, prompting the finance ministry to ask all ministries to clear the airlines’ dues.According to an RTI query that was replied in October this year, the Centre’s total dues to Air India stood at ₹300 crore for both VVIP flights and travel by officials. ₹34 crore was due for VVIP flights, and ₹269 crore for tickets of officials.
The old system required government employees to book with the former national carrier in sectors it serviced. “For other places, where there were no Air India [flights] or its subsidiaries, we had to take prior permission for buying tickets,” said a senior government official, who didn’t wish to be named.
That’s changed now, but three state-owned firms Balmer Lawrie, Ashoka Travels and Indian Railway Catering and Tourism Corporation (IRCTC) will continue to handle all ticket bookings for government employees. Balmer Lawrie, a company under the petroleum ministry, provides logistics support and a host of other business while Ashoka Travels and Tours Ltd is a subsidiary of India Tourism Development Corporation (ITDC). The third entity, IRCTC operates a travel portal, and provides ticket booking and catering for Indian Railways. Both IRCTC and Balmer Lawrie are listed companies.
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India has eight airlines in various sectors apart from some regional carriers primarily focused on a few routes under the government’s Udaan scheme.
A circular of the Lok Sabha secretariat dated November 5, said, “All the officers are thereby requested to purchase air tickets in cash from Air India/Indian Airlines counter or from three agents, i.e. Balmer Lawrie and Co. Ashoka Travels and Tours Ltd and IRCTC, authorised by the ministry of finance for the official journeys to be performed.”
The Lok Sabha circular, citing the General Finance Rules, also told officials that all air ticket bills must be submitted within the stipulated period. “Henceforth, no request to honour the TA/DA claim after the stipulated time limit shall be entertained in any case,” it added.
Air India operates a ticket counter inside Parliament to cater to MPs.
The Union government sold the ailing Air India to Tata Sons last month. Tata Sons bought the national carrier for ₹18,000 crore in a deal that will no longer see hefty bailout packages for the carrier that was widely seen as a burden on the exchequer.
