It is reported that 50 flights, about 10% of its fleet, have been grounded by Air India due to its inability to purchase petrol. The Air India owes huge amounts to the oil companies, since it could not pay the dues to heavy loss of the company. An agreement was reached that the Air India now will have to purchase oil on cash basis. Since the day collection is less Air India has not been able to pay full cash. As such oil companies refused supply of petrol.Hence the cancellation of flights.
If the government can subsidise the private business to the extent of lakhs of crores of rupees, why can’t the government subsidise the PSU, Air India. It was only due to the wrong policy of the Government and pro=private decisions of the former minister that the Air India has gone into loss. It is the duty of the government to save Air India.