Air India's $4.5 Billion Bailout Fails to Avert Grounded 787s
- Carrier grounded 2 Boeing Dreamliners on spare parts shortage
- Airline didn't get components on credit due to cash crunch
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Air India Ltd., the state-run carrier that has survived on a 300 billion-rupee ($4.5 billion) taxpayer-funded bailout, is struggling to pay for spare parts, forcing it to ground two Boeing Co. Dreamliners.
The planes were not operational for about 10 months each as worldwide demand for parts outpaced supply from Boeing, and a “financial crunch" prevented Air India from procuring components on credit, Mahesh Sharma, India’s junior aviation minister, told parliament Thursday. The carrier kept paying rentals of $1 million every month for each of the two planes, in addition to losing money while they were out of operation, he said.