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Thursday, 6 March 2014

Govt's austerity measure bleeds Air India

New Delhi: Government's austerity measures are punching a hole in the 'Maharaja's' pocket. Air India has urged the Centre to restore business class travel for officials of the rank of joint secretary and above, complaining that 'compulsory' economy class travel for them is hurting the revenues of the national carrier.
Last September, the finance ministry issued cost—cutting measures barring senior officials from travelling business or first class on domestic tours.


It seems the government did not realize that Air India is heavily dependent on government use of its services for revenues as officials have instructions to prefer the national carrier while on work.
Barely five months after the finance ministry's diktat, chairman and managing director of Air India Rohit Nandan has written to the government to reverse the order.
Read News In Full 27/02/14 Subodh Ghildiyal/Times of India

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