Air India gets time to pay dues

STATE carrier Air India has got some reprieve from a UK court as it allowed the airline time until early January to make payments in a case of unpaid dues of more than $17.6 million (£13m).

Judge Simon Salzedo issued a strong rebuke to Air India for its “unsatisfactory and discourteous” conduct in relation to the case by not engaging with the process in a timely manner. However, he accepted the “broad thrust” of the airline’s financial difficulties, especially due to the grounding of flights during the Covid-19 lockdown.

The hearing, held remotely at the Commercial Court division in London last Friday (11), involved unpaid dues to China Aircraft Leasing Company Limited (CALC) as part of an aircraft lease agreement for rent and maintenance.

“I accept the broad thrust of Air India’s submission of the financial difficulties it has been facing along with the rest of the aviation sector and also note that it has been making some payments to the lessors,” the judge noted, as he granted Air India until January 11, 2021, to clear the overdue payments.