Govt releases Rs 250 crore of dues to Air India

Total dues Rs 1,100 crores it owed to AI for VVIP operations, Libya evacuation and Haj flights

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The government has released Rs 250 crore to the airline out of the Rs 1,100 crores it owes to the air carrier for VVIP operations, Libya evacuation and Haj flights as per a report in the ET.

The funds have come as a huge relief to the airline, which has not been able to pay full salary to its employees over April and May, following a 10-day strike by its pilots, when it lost Rs 200 crore. "We understand that the government has released part of its dues for movement of very very important persons (VVIPs)," an Air India official said on condition of anonymity. "It is a huge relief to us as it is already June 10 and we haven't paid salaries to our employees."

Being a government-owned airline, Air India flies very very important persons or VVIPs such as the Prime Minister, the President, the Vice-President and visiting dignitaries inside and outside the country. The government owes Rs 800 crore to Air India for VVIP operations and another Rs 400 crore for Libya and Haj operations.

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