Oil marketing companies (OMC) on Thursday stopped supply of aviation turbine fuel (ATF) to the national carrier, Air India because of its failure to clear its dues.
While no flight was cancelled at the time of filing this copy, some of the flights were behind schedule. The Air India management said that the issue was being resolved.
“I have spoken to the petroleum secretary not to disrupt (aviation turbine fuel) supplies and he has assured (us the same),” Civil aviation secretary Nasim Zaidi.
“Air India owed over Rs 250 crore to the three oil marketing companies. It could not honour the 90 day credit, which is why supply of ATF to the company has been stopped. We are in talks with the Air India management and the government. If the company assures us payment within 24 hours, we may resume supply to the carrier,” an executive of an oil marketing company said.
The three OMCs — Indian Oil, Bharat Petroleum and Hindustan Petroleum — stopped ATF supply to Air India at Delhi, Mumbai, Kolkata, Chennai, Thiruvananthapuram and Kochi at 4pm on Thursday.
Zaidi said the cash-strapped carrier had just paid Rs 180 crore. Rs 40 crore would be released on Friday and another Rs 40 crore soon.
In September 2011, when the national carrier faced similar situation, a 90-day credit was extended to it following the intervention of the government. At that time, the national airline owed about Rs 4,000 crore to the OMCs.
Comments