The Union government sold ailing Air India to Tata Sons last month after several failed attempts and extension of deadlines
The Centre has ended Air India’s monopoly over flying millions of government employees after its privatisation, however, a large part of the employees’ ticketing requirements will now be handled by three public sector companies.
Under the new system, government officials can buy Air India tickets in cash or choose to book any other Indian airlines through the three public sector companies that are likely to earn agency commissions and ticketing charges from the huge pool of government employees, estimated to run into a few millions.
On November 2, department of investment and public asset management secretary Tuhin Kanta Panda said it will not be mandatory for government employees to travel in Air India after its privatisation. Air India, too, has stopped offering them the credit facility for purchase of air tickets, prompting the finance ministry to ask all ministries to clear the airlines’ dues.
The old system required government employees to book with the former national carrier in sectors it serviced. “For other places, where there were no Air India [flights] or its subsidiaries, we had to take prior permission for buying tickets,” said a senior official, who didn’t wish to be named.
But while Air India has lost a huge captive customer base, three PSUs, Balmer Lawrie, Ashoka Travels and Indian Railway Catering and Tourism Corporation (IRCTC) get to do all ticket booking for government employees. Balmer Lawrie, a company under the petroleum ministry, provides logistics support and a host of other business while Ashoka Travels and Tours Ltd is under the government’s catering arm India Tourism Development Corporation (ITDC). The third entity, IRCTC operates a travel portal, provides ticket booking and catering for Indian Railways. Both IRCTC and Balmer Lawrie are listed companies.
India has eight airlines serving in various sectors apart from some regional carriers that are primarily focused on some routes under the government’s Udaan scheme. Apart from Air India, Vistara, Air Asia, Spice Jet, Go First, Indigo and Air India express and Alliance Air are operating in the country.
A circular of the Lok Sabha secretariat dated November 5, said, “All the officers are thereby requested to purchase air tickets in cash from Air India/Indian Airlines counter or from three agents, i.e. Balmer Lawrie and Co. Ashoka Travels and Tours Ltd and IRCTC, authorised by the ministry of finance for the official journeys to be performed.”
The Lok Sabha circular, citing the General Finance Rules, also told officials that all air ticket bills must be submitted within the stipulated period. “Henceforth, no request to honour the TA/DA claim after the stipulated time limit shall be entertained in any case,” it added.
The Union government sold ailing Air India to Tata Sons last month after several failed attempts and extension of deadlines. Tata Sons bought the national carrier for ₹18,000 crore in a deal that will no longer see hefty bailout packages for the carrier that was widely seen as a burden on tax revenue and government intervention in an otherwise competitive market.
