Air India stops credit facility on purchase of tickets, govt asks ministries to clear dues

After Air India stopped extending credit facility on purchase of air tickets, the government on Wednesday asked all ministries and departments to clear their dues to Air India given the ongoing divestment of the airline.

Following this, the finance ministry also scrapped a 2009 order that required officials to travel only by Air India for tours paid by the government.

“Air India has stopped extending credit facility on account of purchase of air tickets. Therefore, all ministries and departments are directed to clear Air India’s dues immediately,” the finance ministry’s department of expenditure said in a memorandum.

Read: Centre signs agreement with Tata Sons for Rs 18,000-cr Air India sale

Tickets from Air India will have to be purchased in cash till further orders, it said.

According to an official memorandum of 2009, all domestic and international air travel for official purposes or leave travel concession by the government had to be done only by Air India.

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