Gov committee supports AI funding
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A parliamentary committee has recommended that the government offer intermittent financial support to the ailing national carrier, Air India (AI), with occasional grants to the sum of thousands of crore. “The committee recommends that the government should differentiate between private airlines and Air India as a public sector undertaking supported by the government occasionally by granting thousands of crore of rupees for its functioning,” said
a report by the standing committee on Transport, Tourism and Culture.This is regarded as
a necessary compensation for its responsibilities as national carrier which often requires the airline to act in contradiction of commercial interests by operating unprofitable routes. There
is also the added issue of staff complaints and inefficiencies created by Indian Airlines and Air India merger which has inflicted a five-year hangover – the latest symptom being the threatened pilots strike. The committee has stated that Air India will only become profitable if the issues related to the merger are finally resolved.
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