Govt owes Rs 800 crore to Air India

New Delhi: The government of India, which has infused a few hundred crores of rupees into the financially troubled state-owned carrier Air India, itself owes Rs 800 crore to the airline as bills for VVIP flights made over the past two years.
“It will be a big relief for us if we get those Rs 800 crore due for the past two years. We will be able to pay some loan interest and perhaps take care of fuel charges too for some time,” a senior AI official said requesting anonymity.
The dues need to be cleared especially in light of what is happening with salary payments, he added. Being a government-owned airline, Air India flies very, very important persons or VVIPs such as the prime minister, the president, the vice-president and visiting dignitaries inside and outside the country.
For this purpose, the VVIP Security Cell of the government, that falls under the home ministry, requisitions aircraft from the airline. However, the authority responsible for paying up is the finance ministry.
15/02/11 Economic Times

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Categories: Air India Feb 2011