Setback for Air India as oil companies stop fuel supply at six airportshttps://indianexpress.com/article/business/aviation/air-india-debt-oil-companies-5928287/

Setback for Air India as oil companies stop fuel supply at six airports

At around 4 pm today, state-owned OMCs stopped the fuel supply at Cochin, Visakhapatnam, Mohali, Ranchi, Pune and Mohali, another official of the national carrier said.

Setback for Air India as oil companies stop fuel supply at six airports due to non-payment of dues
Air India has a debt of nearly Rs 48,000 crore on its head. (Representational Image)

Debt-laden Air India faced a setback Thursday when oil companies stopped fuel supplies to the national carrier at six airports due to non-payment of dues, PTI reported. The airlines, however, said that the flight operations remained normal.

An airlines spokesperson said, “In absence of financial support, Air India cannot handle huge debt service liabilities.”

“Our financial performance, however, this fiscal is very good and we are moving towards a healthy operating profit. The airline despite its legacy issues is performing very well,” he added.

At around 4 pm on Thursday, state-owned Oil Marketing Companies (OMCs) stopped the fuel supply at Cochin, Visakhapatnam, Mohali, Ranchi, Pune and Mohali, another official of the national carrier said.

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Air India, which has a debt of nearly Rs 48,000 crore in its books, saw an unsuccessful stake sale process last year when the government put 76 per cent of its stake in the airline for disinvestment.

Following the temporary suspension of Jet Airways, Air India has become the only Indian carrier to operate on long-haul international routes to destinations in Europe and the US.