Air India’s fuel supplies restored at six airports

Sep 8, 2019

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Last month we wrote about government-run Air India being cut off from fuel at six airports in the country after it was unable to pay its suppliers more than $630 million. Despite this, Air India has continued to operate from the affected airports, choosing instead to refill at alternate locations.

Fortunately for the ailing airline, an agreement has been reached with its creditors to make monthly payments in the amount of $2.8 million, leading to the restoration of fueling operations. Whether this will lead to an increase in Air India’s viability as an airline, well, that’s anyone’s guess.

Billions of dollars in debt, Air India’s reputation is so bad that when the government tried to sell it last year there were no takers. It’s a sad turn of events for an airline that monopolized India’s market and was once known as ‘the Maharaja of the skies.’

Air India’s business class on its 787 Dreamliner. Image by Zach Honig / The Points Guy.
Air India’s business class on its 787 Dreamliner. Image by Zach Honig / The Points Guy.

The rise of competitive low-cost carriers, including IndiGo and Spicejet, along with a succession of annual losses, has sent Air India spiraling with no end in sight. Of course, it doesn’t help that its business class offerings are rather…interesting in a market rife with competition from other international airlines serving India, including Qatar Airways, Emirates and Etihad.

Feature photo courtesy of Bruno Geiger / Flickr.

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