Air India Chairman Ashwani Lohani Says 'Stoppage of Fuel Supplies Due to Shortage of Funds'

New Delhi, August 25: The Chairman and Managing Director of Air India, Ashwani Lohani on Sunday said that stoppage of fuel supplies at six airports from Oil Marketing Companies (OMCs) is because of an overall shortage of funds."It is because of an overall shortage of funds but doesn't reflect on the operational performance and recent efforts of the airline," Lohani said. Air India Owes Rs 5,000 Crore in Fuel Dues; Hasn't Paid in 230 Days, Say Oil Companies.

Earlier, on Friday state-owned oil marketing companies (OMCs) led by Indian Oil stopped jet fuel supply to Air India at six airports - Kochi, Pune, Patna, Ranchi, Vizag and Mohali -- over payment defaults. "Oil marketing companies (OMCs) led by Indian Oil have stopped jet fuel supply at six airports," Air India Spokesperson Dhananjay Kumar had earlier said in a statement. Air India Won't Get Fuel at Six Airports, Oil Companies Suspend Supply Over Non-Payment of Dues.

Kumar said Air India cannot handle huge debt service liabilities in the absence of equity support. "This fiscal our financial performance is very good and we are moving towards healthy operating profit. Airline despite legacy issues is performing very well," he had maintained.