The plane was experiencing an emergency due to weather-related turbulence, authorities said.
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Air India on Flakey Financial Footing
Newspaper articles in July promised compensation to Air India crash victims, and here it is September, and they’re still arguing about compensation, which is still unpaid.Perhaps this is partly due to financial circumstances, as independent sources say all Indian airlines are barely keeping afloat, due to competition, low fares and rising wages and fuel expenses,(not to mention corruption, and failed safety efforts) but in the worst shape are Kingfisher Airlines and the state-owned Air India. Liquor tycoon Vijay Mallya who controls Kingfisher, denies rumors of Kingfisher nearing its demise.
In mid-August, the government said it planned to take three months to financially restructure Air India. The turnaround plan is described as a hub-and-spoke route model. Costs will be cut by redeploying staff and unloading real estate.
According to Moody’s any loan to Air India is ‘credit negative’. Air India has incurred heavy losses and has been in the red since its the 2007 merger with Indian Airlines.
In the meantime, who knows when, or how much suffering families will be paid in compensation.
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