GUARANTEEING BUSINESS FOR A PLAYER IN MARKET

I came across this somewhat strange news recently and immediately felt like discussing it with you guys.
The Finance Ministry has made it mandatory for all government officials to fly on Air India (AI) while going out for an official work. This condition is valid both for domestic as well as international visits. And also if the destination is not connected by AI, they have to use the AI service till the closest city (that is connected) to the destination, and then use a different flight. But that different flight should preferably be the one having tie-up with AI.
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In light of the fact that AI which integrated with Indian Airlines, is going through a combined loss of over 7000 Crore and also has a huge debt liability for purchasing new planes, the step taken by government seems to be justified and essential. It had been looking since long for measures to revive its commercial flight operations and this one seems to be going in that direction. In the future, further measures may include a bailout sum from the government.
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And here we are the management students, most of us who may think such a step to be an unfair trade and marketing decision. It directly will affect the business of the private players in Civil Aviation (To prove this, we need statistics of the number of government employees flying every year—if someone can find that, it will be great). Just because government is a regulatory authority does not mean it goes against the morals of Perfect competition. It is something like: A person working at Microsoft cannot keep a Mac.
Now I leave the topic open and hope we come out with a lot more facts related to the matter and also your personal views and opinions.