Unable to pay for fuel, Air India grounds 60 flights

Agencies

Mumbai, 02 June 2011:  Losses are taking a huge toll over the national carrier Air India. After a major strike over pay parity with its pilots, Air India has been forced to ground 10% of its fleet to tide over the fuel companies dues.

60 Air India flights have been withdrawn both from domestic and international routes, many connecting extremely busy airports like London, Delhi, Mumbai and Bangalore.

This comes right in the middle of the peak travel season.

Air India has been unable to clear fuel companies’ dues of Rs. 2,700 crore. So, last week the oil companies refused it additional credit. Now, the airline is forced to fly only on a pay-and-fly basis since it does have the money to fly its entire fleet every week.

Air India: FLYING LOW
                    
SECTOR                      ROUND TRIPS WITHDRAWN

Delhi-London                            14                       

Delhi-Tokyo                               4                         

Delhi-Dubai                               14                

Delhi-Mumbai                             4

Air India officially denies a crisis and says the cutback is routine.
"Flights are curtailed every lean season, This is being done for commercial reasons, Air India told NDTV.

On May 24, Air India launched a new flight between Kolkata and Kanpur - a new route where it will have to build passenger loyalty. Question is why the airline is flying new routes while curtailing profitable flights on its tried and tested sectors?