Following non-payment of dues and repeated reminders for the same by oil-marketing companies (OMCs) to flag-carrier Air India, the fuel retailers have stopped supply of jet-fuel to the airline at six airports.
The airports where the fuel supply was stopped by state-owned OMCs at around 4 pm are Cochin, Visakhapatnam, Mohali, Ranchi, Pune and Patna, an official of the national carrier said.
An Air India spokesperson said, “In the absence of equity support, Air India cannot handle the 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”.
According to an official at Indian Oil Corporation (IOC), the airline’s credit had run up to 200 days, as against the 90-day credit that is usually allowed. Upon repeated reminders by the oil companies, Air India said it would repay Rs 60 crore, which “was a drop in the ocean” for the OMCs, the official added.
“Last week, we had warned the airline that fuel supply would be restricted if payments were not made and today upon non-receipt of dues, we stopped fuel supply at six airport,” the IOC official stated.