Indian Oil Cuts Fuel Supply To Jet Airways Third Time In A Week
A Boeing Co. 737 aircraft operated by Jet Airways India Ltd. approaches to land in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

Indian Oil Cuts Fuel Supply To Jet Airways Third Time In A Week

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For the third time in a week, state-run oil marketer Indian Oil Corporation Ltd. stopped fuel supply to cash-starved Jet Airways (India) Ltd. over non-payment of dues.

The airline also faced the ignominy of losing one of its planes to a European cargo agent who seized one of its wide-body planes at the Amsterdam airport for payment related issues, a source said.

This is the third time that the public sector oil-marketing company has cut fuel supply to the airline in the past eight days, which is struggling to keep afloat amid acute liquidity crisis.

“Indian Oil has stopped fuel supplies to Jet Airways in Mumbai, New Delhi and Hyderabad airports for its failure to clear dues,” the source said. Mumbai is the largest base for the airline and it operates maximum flights from the city.

On March 4 and 5, too, the oil company had cut supplies to Jet and restored only after getting an assurance from the airline management.

Earlier in the day, a European cargo services provider seized one of its Boeing 777-300ER planes at the Amsterdam airport for non-payment of dues.

Jet Airways, however, said the flight was delayed due to "operational reasons."

In a statement, the airline said flight 9W 231 from Amsterdam to Mumbai scheduled for April 10, has been delayed due to operational reasons.

Jet has been operating around 100 flights only with 26 planes as most of the fleet is grounded due to non-payment of lessors' rentals.

Due to cash crunch, the airline has been paying only part salaries to its over 16,000 employees which forced a section of its pilots on Tuesday sending a legal notice to the management which is currently being headed by the lenders led by State Bank of India.

Also read: Jet Airways Creditors Wait for Takeover Bids as Deadline Looms

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