Air India (AI, Delhi International) is struggling financially and has problems sourcing spare parts from the market amid a INR2-INR2.5 billion rupees (USD30-USD37.6 million) cash shortage recorded every month, the Times of India has reported.
The Ministry of Civil Aviation has confirmed that the carrier is lacking money to buy required spare parts.
The airline, which is due to be privatised later this year under the Indian government's privatisation plan, is now channelling all available funds towards maintenance and repair of its fleet, but despite this has been forced to ground a number of planes.
Already in the past, Air India had been struggling to buy spare parts in time. In 2015, it has grounded one B787-8 for several months and used it for spares to keep the remaining units of the type operational.
The consistently loss-making carrier has accumulated some INR489 billion rupees (USD7.35 billion) in debt. In order to make Air India more attractive to potential buyers, the government decided to hive off and assume some of the debt, and privatise up to 76% of shares in the unencumbered carrier. The Air India Group will also be split into four companies, with Air India privatised separately from its regional units, as well as from the ground handling unit and the hotel unit.
