Air India set to close after Jet Airways collapse
5 months ago 202 Gody

What happened?

Shortly after the suspension of all operations for Jet Airways, Air India has got itself into some trouble. The carrier is short by around INR 90 billion! ($1.3 billion) to make repayments on debt due to the current fiscal year. 


Air India needs funds to pay loans and to cover their aircraft purchasing loans. It had recently appealed to the government for once again another bailout, but with elections going on in India it is most likely going to end out with this being ignored. Either Air India will have to default on loans or prune its operations to gain some cash back. Additionally, to this, there's a slight change that bankruptcy will happen. Air India's total debt is at $7.8 Billion. However, the government offloaded more than half of the cash needed which was around $4.2 billion!


Future plans for India!

Air India is planning on adding capacity onto their existing routes operated by Jet Airways and their 777-300ER. Chairman of India, Ashwani Lohani, sent a letter to the State Bank of India, exploring the possibility of opeating five of Jet Airways grounded Boeing 777-300ER for the following routes


Mumbai - London

Mumbai - Dubai

Delhi- London

Delhi - Dubai

Delhi - Singapore


The above routes suggested a huge loss when Jet Airways stopped flying internationally.


Boeing_737-8HJ_Air_India_Express_AN1628504.jpg


WHAT DO YOU THINK ABOUT THIS? LET US KNOW IN THE COMMENTS BELOW!




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Comments
Tom
5 months ago
Look at how the government has run AI. There's stories of politicians ordering the airline to use larger aircraft on some flights so they can get first class seats. It badly needs privatisation.
Will
5 months ago
Considering Jet Airways was quite a large airline that went bankrupt, it just shows that it doesn’t matter the size. Oh well hopefully this won’t be the same for Air India