Govt may review free passage scheme offered by AI to staff

Last Updated: Thursday, May 29, 2014 - 21:32

New Delhi: New Civil Aviation Minister Ashok Gajapathi Raju on Thursday indicated that the new government could review the free passage scheme offered by cash-starved Air India to its 24,000 employees.

"There are a lot of things of concern as of now. These have to be looked into," Raju told reporters when asked about the loss-making carrier offering such a scheme which also included the relatives of employees.

However, Raju also pointed out that issues like the definition of a family under the scheme called 'Passage Entitlement-Vacation Travel' would have to be examined.

Under this scheme, top officers like functional directors and joint managing directors are entitled to get 24 free tickets each year, while the lowest rung staffer are entitled to eight tickets annually. However, all taxes and fees have to be paid by the employees who avail such tickets.

Air India had come out with a circular in April saying the spouse of a deceased staffer could transfer his or her tickets to their children or step-children.

The scheme came at a time when the national carrier is estimating an overall annual operating loss of Rs 2,123 crore in 2013-14, down from Rs 5,200 crore reported in 2012-13 and Rs 7,560 crore posted the year before. The airline is also faced with a cumulative debt burden of Rs 35,000 crore.

But senior Air India officers defended the scheme, saying it was an industry practice, globally as well as by all the domestic airlines too.

"It is a practice which is followed by all airlines world over as per IATA resolutions. All airlines operating in India, including loss-making private ones also offer this facility to their employees," senior airline officers said.

They said that after the death of an employee, the spouse can avail of the benefits, part of which he or she can transfer to the children. But after the demise of the spouse, the facility is not passed over to the next generation.

First Published: Thursday, May 29, 2014 - 21:32
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