Govt enhances compensation for Air India to operate flights for President, PM

The costs of maintenance have been constant since 2011-12

GN Bureau | July 6, 2018


#Air India   #PSU  

Easing the financial burden of the Air India, the government has decided to enhance the expenditure for special extra section flights (SESF) operations from Rs 336.24 crore to Rs 534.38 crore for 2016-17 to compensate the cost of living index and exchange fluctuation for the maintenance of wide-bodied B747-400 aircraft.

The government wants to ease out the financial pressure of the national carrier which operates SESF with B747-400 aircraft for the President, the Vice President and the Prime Minister of India. In view of the serious financial and liquidity position to the company, the enhancement would help to ease some of its financial burden, a statement said.

The costs on account of these flights are reimbursed to Al by the respective ministries. The union cabinet in October, 2011 had approved an annual expenditure of Rs 336.24 crore for meeting the fixed costs relating to the expenditure incurred by Al on the said aircraft.

This fixed cost of maintenance was allocated amongst the three respective ministries. These costs have been constant since 2011-12 fiscal. Over the past five years there has been a substantial increase in the expenditure incurred by Al on maintenance of these aircraft on account of the increase in the cost of living index, depreciation of the Rupee against the US Dollar and increase in the material cost. It is therefore necessary to review the estimates/reimbursements provided to Al since 2011-12 FY as the cost base has not been indexed to inflation.

Since, Al is suffering financial losses, the airline cannot afford to provide any services below its cost, a release said.

Comments

 

Other News

A great literary feast (that could’ve been even more sumptuous)

A Case of Indian Marvels: Dazzling Stories from the Country’s Finest Writers Edited by David Davidar Aleph, 390 pages, Rs 999 Change is the only constant, and India has always been doing so. Yet, after independence, if there was a year when the p

Govt e-Marketplace sellers report more business

“My volume of business has increased ever since I registered on GeM (Government e-Marketplace) in 2017. Earlier, I could supply items only in the vicinity of my shop in Fort area and only within Mumbai. Now, I ship my products all over the country! I have tied up with India Post and three private cou

How the Hindi Newspaper Business Changed

The Journey of Hindi Language Journalism in India: From Raj to Swaraj and Beyond By Mrinal Pande Orient BlackSwan, 188 pages, Rs 1,195.00 In India, the English-language media is considered the ‘national media’, while the language press

More reforms in telecom sector in offing: Ashwini Vaishnaw

The telecom sector in the country will witness more reforms in the coming years, minister for communications, electronics & IT and railways Ashwini Vaishnaw has said. He also asserted that the industry too will have to do its bit and reciprocate by improving quality of service significantly.

Left-wing extremism: challenges and response

Left-wing extremism is in existence right from India’s independence, but it became prominent in 1967 under the name of Naxalism. The nomenclature of this movement has changed from time to time and place to place depending upon the leadership. Before 2014 more than 15 states were facing this problem w

Agri Min organises events ahead of International Year of Millets 2023

A series of pre-launch events and initiatives have been organised by the Department of Agriculture and Farmers Welfare on the MyGov platform in the run-up to the International Year of Millets 2023 to create awareness and a sense of participation in the country  around the ancient and forgotten golden

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter