Ailing Air India draws plans for lean season
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Faced with a twin attack from oil companies and operators of Delhi and Hyderabad airports asking it to clear their dues, Air India has drawn up plans to combine 13 flights spread over a few sectors till the start of the lean season from mid-June. Economic Times said the carrier had written to the Civil Aviation Ministry urging the government to clear an estimated INR1,150 crore worth of dues on account of VVIP movements and evacuation flights including those to Libya. It also wanted the government to quickly release INR 1,200 crore worth of equity infusion, the provision for which has been made in the 2011-12 budget.Sources quoted by the paper said this would enable the national carrier to face the crisis which has started adversely hitting its operations. Three oil companies – Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation – had decided to slash supply of about 500 kilolitres of jet fuel per day to the airline, sources were quoted saying.To meet this situation, Air India had chosen to fill the tanks of its aircraft from Dubai, London, Paris, Frankfurt and Bangkok where the prices are much cheaper than in India. To meet the fuel restrictions, the airline has decided to curtail 13 of its services by combining flights on certain sectors, including Delhi-Mumbai and Chhattisgarh, they were quoted saying.During the lean season from 15 June till September, number of flights would in any case be curtailed due to low traffic and, therefore, there would be less fuel uplift. Air India, which cancelled six flights yesterday, did not cancel any flight today, they said. On top of this crisis, the GMR-led Delhi International Airport Limited (DIAL) and GMR Hyderabad International Airport Limited (GHIAL) have also stopped their credit line and asked the national carrier to pay the landing, parking and navigation charges upfront or face restrictions on these services from June.
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