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Air India to combine 13 flights to tackle fresh financial crisis


7 Apr 2011
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NEW DELHI: Faced with a twin attack from oil PSUs and operators of Delhi and Hyderabad airports asking it to clear their dues, Air India on Saturday drew up plans to combine 13 flights spread over a few sectors till the start of the lean season from mid-June.

In a bid to face the fresh financial crisis, the ailing national carrier sent a letter to the Civil Aviation Ministry urging the government to clear an estimated Rs 1,150 crore worth of dues on account of VVIP movements and evacuation flights including those to Libya.

It also wanted the government to take an expeditious decision on releasing Rs 1,200 crore worth of equity infusion, the provision for which has been made in the 2011-12 budget. This would enable the national carrier to face the crisis which has started adversely hitting its operations, sources said.

Three oil PSUs, Indian Oil Corporation , Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation , decided to slash supply of about 500 kilolitres of jet fuel per day to the airline, sources said.

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