Air India gets ₹200 crore more for VVIP flights

The government on Wednesday approved an increase of nearly ₹200 crore for VVIP flight operations carried out by Air India.The decision was taken at the meeting of the Cabinet Committee on Economic Affairs.

Air India deploys its Boeing 747-400 aircraft for international visits undertaken by the President, Vice-President, Prime Minister of the country and is reimbursed by the government for expenses incurred by the airline. It has also purchased two Boeing 777 planes to replace the older 747s for VVIP operations. The new planes are undergoing retrofitment and will be ready by 2020.

Earlier, Air India would receive ₹ 336.24 crore plus applicable taxes, which has now been increased to ₹.534.38 crore plus applicable taxes for 2016-17 along with built-in annual escalation of 10%.

The government said that the revision is due to inflation, depreciation of the Rupee against the US Dollar as well as exchange fluctuation for maintaining the aircraft. The amount of reimbursement for these flights was last fixed last in 2011-2012.

“Over the past five years there has been a substantial increase in the expenditure incurred by Al on maintenance of these aircraft on account of the increase in the cost of living index, depreciation of the Rupee against the US$ and increase in the material cost,” according to a press statement.

The statement added that since Air India is facing financial losses it can’t be expected to provide VVIP services below the cost incurred by it.

Air India's debt burden as of March 31, 2017 is ₹ 48,781.3 crore.

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Printable version | Oct 26, 2020 7:46:46 AM |

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