Friday, November 05, 2021

Air India divestment: Rajya Sabha asks members to clear travel bills

The Rajya Sabha has asked its members to settle their air travel bills at earliest to clear the dues of Air India. The Upper House's Secretariat in its letter to the members said that 'Air India has stopped extending credit facility for purchase of air tickets against exchange orders which was in practice in the past'.

"Members are requested to submit their travel allowance claims in the prescribed form along with original air tickets and boarding passes purchased against the exchange orders already issued either by the Rajya Sabha or Lok Sabha Secretariat for the purpose of attending Committee meetings, tours should be submitted to the Rajya Sabha Secretariat for their settlement and clearing of Air India's dues at the earliest," the letter reads.

The RS communication also said that the air tickets from Air India may be purchased in cash till further instructions. The Union government has disinvested the state owned Air India to Tata Sons and the process of handing over and clearance of dues are under process.

The Finance Ministry on October 27, 2021, wrote a letter to all union ministries and departments, directing them to clear all their dues towards Air India immediately, stating that the debt ridden national carrier was taken over by the Tata Sons in an open bid held recently. "All the dues must be cleared by all ministries and departments before the handing over process of the airlines gets completed.' the Ministry added.

It also informed the credit facility was stopped by the Tata Sons, hence the ticket must be purchased in cash from now onwards till further instructions.

In July 2009, the Department of Expenditure under the Finance Ministry had instructed government officials that the air travels for both domestic and international routes, including Leave Travel Concession (LTC) which is paid by the Union government, would fly only on Air India.

05/11/21 News Minute

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