Another day another round of embarrassing news about India’s national flag carrier. Air India was forced to cancel 60 domestic and international flights Thursday because it hasn’t paid its fuel bill.
The government-owned airline owes money to three public sector oil companies (essentially, the government owes itself money). Local reports suggest the total owed is around $2.7 billion.
And as if that wasn’t enough, The GMR Group, which has a majority stake in the airports at New Delhi and Hyderabad, told Air India that as of yesterday, it had to operate on a ‘cash-and-carry’ basis after the airline failed to pay its airport charges on time. Both problems, and a cash shortage in the airline’s coffers, have forced Air India to ground some 10% of its fleet.
It is good news, of course, for India's other carriers, who will be able to cash in on AI's woes...again.