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Clear all dues to Air India ‘immediately’, Ministries told

Air India and Air India Express have also stopped extending ‘credit facility’ for ticket purchases by Ministries.   | Photo Credit: Reuters

The Finance Ministry on Wednesday scrapped a standing order requiring officials to travel only by the national carrier Air India and asked government departments to remit dues to the airline ‘immediately’ in view of its proposed sale to the Tata group.

Stressing that Air India and Air India Express have stopped extending ‘credit facility’ for ticket purchases by Ministries, the Finance Ministry said all fresh tickets for Air India flights be purchased “in cash till further instructions”.

In July 2009, the Department of Expenditure had mandated that all cases of international and domestic air travel, including those involving leave travel concession journeys, where the Government of India bears the cost of passage, officials may travel only by Air India.

In an office memo titled “Air Travel on official account” issued on Wednesday with the approval of Finance and Expenditure Secretary T.V. Somanathan, the Ministries have been directed to bring the fresh instructions to the notice of all subordinate offices under their watch for ensuring compliance.

“Recently, the Government of India has decided to disinvest Air India, the process of disinvestment of Air India and Air India Express is ongoing… All Ministries/Departments are directed to clear Air India’s dues immediately,” the latest diktat said.

On Monday, Civil Aviation Ministry officials and the Tata group representatives signed a share purchase agreement for the sale of the ailing carrier to the Mumbai-based conglomerate. The Government has indicated that it hopes to conclude the handover of the airline’s control by December, after completing all other pending formalities and procedural requirements.

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Printable version | Jan 17, 2022 10:36:54 PM |

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