NEW DELHI: As Air India and AI Express are set to lose their PSU tag and revert to the founder of the Tata group, the Center has asked all ministries to pay airline dues and make new purchases in cash only.
“AI has stopped extending the credit facility due to the purchase of airline tickets,” a memorandum issued by the Finance Department said on Wednesday. A senior IA official said the practice of giving 2-3 month credit has been stopped and all sales are now only cash.
In 2009, the government decided that all domestic and international air travel, including LTC, where it bears the cost of air passage, should be on state-owned AI. Now, with AI and AI Express in private hands, the rules are changing.
“AI stopped extending the credit facility due to the purchase of airline tickets. Therefore, all ministries / departments are urged to pay DI contributions immediately. AI plane tickets can be purchased in cash until further notice, ”read the memo released Wednesday by the spending department at finmin.
MPs are entitled to a number of plane tickets each year, which until now were mostly on AI.
A senior aviation ministry official recently told TOI: “AI was charging for these tickets. Now we can make it an open system where members of Parliament can choose the flight that works best for them. The money the government has used so far to pay for state-owned AI into this account will go to the airline MPs choose.
“AI has stopped extending the credit facility due to the purchase of airline tickets,” a memorandum issued by the Finance Department said on Wednesday. A senior IA official said the practice of giving 2-3 month credit has been stopped and all sales are now only cash.
In 2009, the government decided that all domestic and international air travel, including LTC, where it bears the cost of air passage, should be on state-owned AI. Now, with AI and AI Express in private hands, the rules are changing.
“AI stopped extending the credit facility due to the purchase of airline tickets. Therefore, all ministries / departments are urged to pay DI contributions immediately. AI plane tickets can be purchased in cash until further notice, ”read the memo released Wednesday by the spending department at finmin.
MPs are entitled to a number of plane tickets each year, which until now were mostly on AI.
A senior aviation ministry official recently told TOI: “AI was charging for these tickets. Now we can make it an open system where members of Parliament can choose the flight that works best for them. The money the government has used so far to pay for state-owned AI into this account will go to the airline MPs choose.
