In A Breather For Air India, Fuel Retailers Not To Stop ATF In Hyderabad, Raipur
Air India flight A321 sits on the tarmac during the inauguration of the B777-200LR and Airbus 321at Indira Gandhi International Airport in New Delhi, India. (Photographer: Pankaj Nangia/Bloomberg News)

In A Breather For Air India, Fuel Retailers Not To Stop ATF In Hyderabad, Raipur

Bookmark

Oil marketing companies on Friday deferred a decision to suspend fuel supplies to Air India in Hyderabad and Raipur over non-payment of dues.

Last month, Indian Oil-led OMCs had asked the national carrier to make a lump-sum payment towards outstanding dues, including interest, at the earliest or else face cut in fuel supplies at two more airports and from Aug. 22, they stopped supplies to Air India in Pune, Vizag, Cochin, Patna, Ranchi and Mohali.

"The ban on fuel supply at these six airports continues. Supply at the rest of the airports remains normal," Air India spokesperson said in a statement Friday.

Though Air India has been on a cash-and-carry mode since April, and has been paying Rs 18 crore daily toward fuel bills, OMCs sought clearance of all dues at the earliest. The IOC provides 90-day credit to Air India without collaterals, but the dues have been mounting, and it must be over 240 days now.

The airline's total fuel bill dues stood at 4,600 crore as of end-March, which came down to Rs 4,300 crore as of end-July.

Also read: Oil Companies Likely To Resume Fuel Supply To Air India At Six Airports

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.