New Delhi: The government has formed a committee to look into Air India’s policy of giving tickets free or at a concession to certain categories of employees.
“In Air India, concessions are given even to distant family members of employees. We have to revisit several such issues. A committee has been appointed to look into the issue,” said V. Narayanasamy, minister of state in the PMO. The government will take appropriate steps after the committee submits its report.
“Air India offers free tickets to organisations and associations as part of advertising and sales promotion and also to individuals for claims arising out of complaints. All employees of Air India, including retired employees and their families, are also eligible for free and concessional passes of varying terms,” he said.
These tickets are offered under approved schemes. So, no revenue has been foregone. But in view of the mounting losses, Air India may relook the policy based on the recommendations of the committee, Narayanasamy said.
The airline’s accumulated debt of Rs 42,570 crore means the government needs to inject over Rs 6,500 crore annually just to keep the company in business.
25/08/11 Telegraph
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