16 Jul, 2016 12:51 PM

Cabinet note in process to allow any airlines - cheapest for official flights

Loss-making Air India may soon lose the privilege of being the sole carrier of government employees. The civil aviation ministry is preparing a Cabinet note that will allow them to opt for the cheapest fare, regardless of carrier. Currently, government employees can only use other carriers if there is no Air India option.

"The finance ministry, in one of the review meetings, has asked us to abolish this rule mandating Air India for official flights," said a senior aviation ministry official, seeking anonymity. "We are preparing a Cabinet note, which should reach the Cabinet for approval in 15 days." Air India, in the midst of a government bailout programme, may not have too much sympathy among some members of the government.

Cabinet Minister M Venkaiah Naidu recently vented his ire on Twitter about missing a meeting 10 days ago because his Air India flight was delayed. The current rules mandate all central government employees should fly Air India on official trips. In case a destination is not connected by Air India, the official has to apply for an exemption from the civil aviation ministry.

Air India may lose privilege of being sole carrier of government staff if Cabinet note goes through

"The process of seeking exemptions from the aviation ministry is tedious," a government official said. "All of us will be more than happy to fly other airlines and the government would also save if we book the cheapest fares."

Analysts said the move will hurt the national carrier as government employees, given a choice, may not prefer Air India over its peers.

"I also do not think this loss of business would improve the services of Air India because the problem identification at Air India since the beginning is wrong. And one cannot improve unless the correct problem is identified," said Shakti Lumba, former head of operations at Air India and IndiGo. An Air India official said the move wouldn't have any impact as the carrier's fares are consistently low.

"Our fares are competitive with our full-service peers and we will surely retain all our government fliers on that count," said the senior Air India official. "We also have special schemes designed for government employees that will surely help us retain their business."