Oil Companies Stop Fuel Supply to Air India at 6 Airports Over Non-payment of Dues
Oil Companies Stop Fuel Supply to Air India at 6 Airports Over Non-payment of Dues
According to an airline official, discussions are underway to resolve the matter and Air India has already paid Rs 60 crore as lump sum.

New Delhi: State-owned oil marketing firms 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.

According to an airline official, discussions are underway to resolve the matter and Air India has already paid Rs 60 crore as lump sum.

The airports where the fuel supply was stopped by the state-owned OMCs at around 4 pm are Cochin, Visakhapatnam, Mohali, Ranchi, Pune and Mohali, another official of the national carrier said.

Air India spokesperson said, "In the absence of equity support Air India cannot handle the huge debt service liabilities."

However, he said the flight operations of the airline are currently normal and unaffected.

"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.

"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 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."

(With inputs from agencies)

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