Centre ropes in Saudi airlines to fly Haj pilgrims

New Delhi: The government has been able to save Rs 175 crore on Haj subsidy this year by selecting three Saudi airlines through the sealed tender process to fly Indian pilgrims to perform the worship, instead of national carrier Air India doing it.
“Operating costs of Air India for flying Haj pilgrims are higher than Saudi airlines because jet fuel costs more in India than elsewhere. So it made sense to discontinue the tradition and save on the subsidy,” a senior official in the civil aviation ministry told ET. Air India had also participated in the tender process.
The government paid Haj subsidy of Rs 770 crore last year, which is provided in flight tickets and accommodation provided to the Haj pilgrims.
“We have saved around 25% of the subsidy paid last year because of competitive bidding for flying Haj pilgrims,” he said.
For the first time in 45 years, the country’s national carrier Air India will not transport Haj pilgrims. Three Saudi airlines — Saudi Arabian Airlines , Al-Wafeer Air and NAS Air — will operate 431 flights for Haj pilgrims.
Saudi carriers have an advantage as they get jet fuel at a cheaper rate than India.
21/10/10 Anindya Upadhyay/Economic Times

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Categories: Foreign Oct 2010, NACIL Oct 2010, New Oct 2010