Govt Hikes Compensation for Maintenance Costs of AI Planes Used for VVIP Flights
For the current fiscal, the budgeted amount for annual maintenance of Air India's Boeing planes used for VVIP flights is Rs 320 crore, Minister of State for Civil Aviation Jayant Sinha told the Lok Sabha.
The expenditure excludes that of crew and staff salaries, insurance, depreciation and interest on borrowings, among others.
The revision is from "Rs 336.24 crore plus applicable taxes to Rs 534.38 crore plus applicable taxes for FY 2016-17 with an annual escalation of 10 percent to compensate for inflation for maintenance of B747-400 aircraft," he noted.
These planes, maintained by Air India, are used for ferrying the President, the Vice President, and the Prime Minister.
According to him, escalation in cost is also due to expenses on spares as procurement is in dollar terms. "There has also been overall cost increase due to rise in the cost of spares services and cost related to wages of crew and overheads," he noted.
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