AirIndia in trouble as fuel suppliers stop deliveries

AirIndia has gotten itself into trouble with its fuel suppliers by not paying them. As a result the airline and its subsidiaries has been blocked from uplifting fuel at 6 airports.

The stop in deliveries also applies to subsidiary Alliance Air.

The airline seems to be surprised that not paying its bills has resulted in a lack of service.

There are widespread concerns that this sort of payment default is the tip of the iceberg – previous airlines in India that started on their down spiral just this way. JetAirways, Kingfisher, both started by not paying fuel bills before their eventual demise.