Air India Won't Get Fuel at Six Airports, Oil Companies Suspend Supply Over Non-Payment of Dues
In a major setback for Air India, Oil marketing companies (OMCs) have decided to stop fuel supply to the national carrier at six airports due to non-payment of dues. The flight operations of Air India, however, remained unaffected.
New Delhi, August 23: In a major setback for Air India, Oil marketing companies (OMCs) have decided to stop fuel supply to the national carrier at six airports due to non-payment of dues. The flight operations of Air India, however, remained unaffected despite suspension of jet fuel supply. The state-owned OMCs, led by Indian Oil, stopped the fuel supply at airports in Cochin, Visakhapatnam, Mohali, Ranchi, Pune and Mohali.
"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 Indian Oil official told IANS. The official said that discussions are underway to resolve the matter and Air India has already paid Rs 60 crore as a lump sum on this account. Air India Delhi-Jaipur Flight Makes Emergency Landing at Delhi Airport, All 59 Passengers Safe.
"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 was quoted as saying. According to reports, Air India has decided to double the fuel upload in flights to these six airports so that planes don't need to refuel at any of these stations. Air India to Fly Over North Pole from Delhi to San Francisco.
As a result, Air India may offload some passengers, especially those on long routes like Delhi-Kochi or Mumbai-Kochi, because extra fuel upload increases the aircraft weight. Reacting to the development, an Air India spokesperson Dhananjay Kumar told PTI, "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.
(The above story first appeared on LatestLY on Aug 23, 2019 11:15 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).