New Delhi: National carrier Air India may soon lose the privilege of being the sole carrier of government employees. A cabinet note being prepared by the Ministry of Civil Aviation proposes to allow government employees to opt for the cheapest fare, a move that may hit Air India, the first option for several bureaucrats and central government employees for official travel.
Employees are currently mandated to use AI as the first option and only opt for other airline if Air India is not an option. In case if any destination is not connected by Air India, the official has to apply for an exemption from the Civil Aviation ministry.
A report by ET says that the Finance ministry has now sought for abolishing the rules that mandate Air India for official flights. The report quotes a senior Civil Aviation ministry as saying that a cabinet note is being prepared which should reach the Cabinet for approval in 15 days.
Air India recently came under fire from Union M Venkaiah Naidu on Twitter when he missed a meeting because his Air India flight was delayed.
Government officials have cited the process of seeking the government’s exemption to fly an airline other than AI as very problematic. The officials also believe that the government would end up saving if officials use flights with cheaper fares.
Shakti Lumba, former head of operations at Air India and IndiGo said that the loss of business, if this proposal was to go through, would only improve the services of Air India if the actual problem is identified.
Latest Business News
