Centre hikes annual maintenance cost of AI’s VVIP aircraft

In a relief to cash-strapped Air India, the Government on Wednesday also approved a proposal to enhance the expenditure for operation and maintenance of the carrier’s VVIP aircraft by nearly Rs 200 crore from Rs 336.24 crore. Air India engages the ‘Special Extra Section Flights’ or SESF or VVIP aircraft such as the Boeing B747-400 for the President, the Vice President and the Prime Minister.

The proposal was approved by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi to help ease some of the financial burden of the airline facing serious financial and liquidity position, an official statement said. “The CCEA has given its approval to enhance the expenditure for SESF operations from Rs 336.24 crore plus applicable taxes to Rs 534.38 crore plus applicable taxes for 2016-17 with built-in annual escalation of 10 per cent to compensate the cost of living index and exchange fluctuation for the maintenance of B747-400 aircraft,” the statement added.