City
Epaper

Fuel supply to Air India stopped at 6 airports (3rd Lead)

By IANS | Updated: August 22, 2019 20:55 IST

State-owned oil marketing companies (OMCs) on Thursday evening stopped fuel supply to national carrier Air India at six airports, following non-payment of dues.

Open in App

The OMCs, led by IndianOil, have stopped jet fuel supply at the Ranchi, Mohali, Patna, Vizag, Pune and Cochin airports.

"Fuel supply by OMCs to Air India have been stopped on Thursday evening due to non payment of dues. However, we are in touch with the airline and are hopeful of a resolution," a senior IndianOil official told .

An airline official told here that discussions are underway to resolve the matter and Air India has already paid Rs 60 crore as lump sum on this account.

"We are in discussion with the OMCs to resolve the issue. Additionally, we have also paid Rs 60 crore for past supplies and made today's (Thursday) payments as well," a senior Air India official said.

"Flights have been loaded with return sector fuel to ensure that operation will not get impacted."

Currently, jet fuel accounts for the largest chunk of the operating cost for airlines.

According to Air India spokesperson Dhananjay Kumar: "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," he added.

The divestment-bound airline has not been provided with any equity support from the government in 2019-20 to run day-to-day operations.

( With inputs from IANS )

Open in App

Related Stories

InternationalCanada conducts first humanitarian airdrop in Gaza

BusinessFrom Grit to Glory: OMG Face of the Year 2025 Crowns India’s Next-Gen Icons

InternationalPoJK Doctor barred from leaving Pakistan, sparks outcry over rights violations

InternationalUS condemns Brazil's court order for house arrest of former President Jair Bolsonaro

NationalCM Stalin to visit Coimbatore and Tirupur on August 11–12

कारोबार Realted Stories

BusinessFrom Grit to Glory: OMG Face of the Year 2025 Crowns India's Next-Gen Icons

BusinessLEAD Group Achieves EBITDA Breakeven; Secures ARR of Rs. 415 Cr for AY '25 - '26

BusinessTitan Intech Posts 42.6% PAT Growth in Q1 FY 25; Announces Rs 4.5 Cr R&D Capitalization

BusinessAuto component exporters may lose edge if India-US trade deal is delayed: ICRA

BusinessIMMA B2G Roundtable Pushes for Unified Licensing, Bio-stimulant Reform, and Export Liberalization