NEW DELHI: Cash-strapped Air India was forced to cancel some flights Friday after oil companies refused to give the state-run carrier fuel because of a failure to pay bills.
The flagship carrier cancelled at least four flights in southern India after state-owned oil firms said they would not give the carrier jet fuel because of unpaid debts, a spokesman said.
The spokesman, who declined to be named, played down the cancellations, saying it was “not a major problem” and flights had returned to normal.
“This problem is being resolved,” the spokesman said. “We expect to pay for our fuel and also to obtain some assistance from the aviation ministry.” Air India's fuel woes have further dented the image of the so-called “Maharajah” of the skies, which once monopolised Indian airspace but now has been overtaken by private carriers.
Air India posted losses of 34.5 billion rupees ($771m) in the first half of the last fiscal year on top of a loss of Rs55.5 billion ($1.23bn) during the previous 12 months, according to government figures.—AFP