New Delhi: National carrier Air India could lose its exclusive clientele base as the Department of Public Enterprises has directed all officials of the 246 state-owned companies to avail of the cheapest air ticket available for official travel instead of indiscriminately flying Air India.
In a letter dated January 7, 2013, the ministry of heavy industries and public enterprises has instructed officials of all Central Public Sector Enterprises (CPSEs) to avail of "cheapest discounted air fare of the entitled class" for work-related travel.
"All administrative ministries/departments are requested to advise CPSEs under their administrative control to comply with the above instructions strictly," the letter reads.
While, this move could benefit government-owned companies by pruning their travel budgets, it could mean a substantial hit for Air India's business, which had just started recovering sometime in the middle of last year.
17/01/13 Anindya Upadhyay & Dheeraj Tiwari/Economic Times
