Fuel supply to Air India stopped at 6 airports

New Delhi, Aug 22 (IANS): 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.

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 IANS.

An airline official told IANS 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.


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Comment on this article

  • G R PRABHUJI, Mangalore

    Fri, Aug 23 2019

    I think that soon most all companies will be under foreign investors. And will run by them. Our achievements after 2014.

    DisAgree Agree [4] Reply Report Abuse

  • NN, NN

    Thu, Aug 22 2019

    Is it advisable to buy air tickets from Air India in advance?

    DisAgree [2] Agree [2] Reply Report Abuse

  • Allen, Mangalore

    Thu, Aug 22 2019

    Achievement of BJP govt. 👍

    DisAgree Agree [8] Reply Report Abuse

  • Abdullah Amin, Pumpwell, Mangalore

    Fri, Aug 23 2019

    Combined successful efforts of Chidambaram & Praful Patel, dear Mr Allen , now being repaid by Mr Modi.

    DisAgree Agree Reply Report Abuse

  • ad, mangaluru

    Fri, Aug 23 2019

    Air India will not in the air looks like. Modi need to travel now pada yatra.

    DisAgree Agree [2] Reply Report Abuse

  • Indian, Karnatak

    Thu, Aug 22 2019

    Nothing strange one more game plan by the anti Indian activists. Very soon this air lines name going to diappear and start to function with new name. Then fuel supply will back to normal. After that railway will be sold to private company.
    Still smart Indians never ???.
    Jai Ho

    DisAgree [3] Agree [27] Reply Report Abuse

  • Krishna Dasa, Udupi,.

    Fri, Aug 23 2019

    Oil prices may go up soon in international oil market. Air India may go out of business just like King Fisher & Jet Airways and may not have any buyers for Air India. Wise person will not purchase ticket on a Airline which about to go under. It may be the largest earthquake for strugling Indian economy

    DisAgree Agree [1] Reply Report Abuse

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