The aircraft, which was en route from New Delhi to Frankfurt, was flying over Romanian airspace when a fire alarm faultily went off.
An Air India spokesperson, speaking on condition of anonymity, said that the pilot made an emergency landing in Bucharest at around 4:55 a.m. GMT on Saturday.
He added that a thorough check was carried out on the aircraft but no fire was discovered.
Air India is grappling with problems due to daily losses of about 2 million US dollars, rising fuel costs, increased competition, and labor disputes.
Last month, the Indian government approved a debt restructuring plan and announced that it would allocate $5.9 billion to the airline over the next eight years.
MP/MF/HGL
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