AI may get R800 cr refund for VVIP,special flights

The ministry has already forwarded Air Indias request to release Rs 115 crore on account on VVIP dues. The note has already gone to the Cabinet, said a civil aviation ministry source. The Committee,said sources,asked Air India to firm its turnaround and financial restructuring plan and submit to the ministry. These plans will later be vetted by the Group of Ministers overseeing Air Indias health. The ministry has sent a proposal for equity infusion of Rs 1,200 crore for consideration of the Cabinet. It is likely to be taken up in a weeks time, said the official.

At the same time,the government is actively considering using the Indian Air Force maintained aircraft for VVIP operations. In the last five years,Air India operated 47 VVIP flights for which the Boeing 747-400s were withdrawn from commercial services for a total of 313 days,sources said.

The total bill for these five years totalled Rs 1,222 crore. Of this,maintenance cost accounted for Rs 866 crore,the capital expenditure Rs 206 crore and a cash cost Rs 150 crore.