Air India Financial Troubles

Indian aviation industry witnessed tumultuous developments in 2012 with the grounding of Kingfisher Airlines and financial trouble hitting Air India and other carriers even as a prestigious airport project contract bagged by a leading Indian infra firm was terminated by the Maldivian government.

In a statement issued by the company in response to the International Air Transport Association (IATA) decision to suspend the airlines from its clearing house due to non-payment of dues, the airlines said that they were working with the tax authorities and that they expected the accounts to be un-attached soon.

Protesting delayed payment of salaries and allowances, a section of Air India pilots on Wednesday warned they would not undertake flying duties from April 1 if their dues were not cleared by then.

With Air India and Kingfisher going through their worst crises, the government is working on a policy package to help the entire cash-strapped industry come out of the financial rut, official sources said today.

Indian aviation industry witnessed tumultuous developments in 2012 with the grounding of Kingfisher Airlines and financial trouble hitting Air India and other carriers even as a prestigious airport project contract bagged by a leading Indian infra firm was terminated by the Maldivian government.

In a statement issued by the company in response to the International Air Transport Association (IATA) decision to suspend the airlines from its clearing house due to non-payment of dues, the airlines said that they were working with the tax authorities and that they expected the accounts to be un-attached soon.

Protesting delayed payment of salaries and allowances, a section of Air India pilots on Wednesday warned they would not undertake flying duties from April 1 if their dues were not cleared by then.

With Air India and Kingfisher going through their worst crises, the government is working on a policy package to help the entire cash-strapped industry come out of the financial rut, official sources said today.