Oil firms warn Jet Airways, Kingfisher on dues

Mumbai: State-run oil marketing companies have threatened to stop selling fuel to Jet Airways (India) Ltd and Kingfisher Airlines Ltd if they don’t clear dues on interest payments by 4 February, a senior executive with one of these oil companies said.
Bharat Petroleum Corp. Ltd, Indian Oil Corp. Ltd and Hindustan Petroleum Corp. Ltd, in separate letters to the two carriers, also said they would refuse to sell jet fuel on credit from 29 January if the dues weren’t cleared by Wednesday, the executive said on condition of anonymity.
The executive said the oil companies have a commercial agreement with the two airlines and interest is due on outstanding payment beyond the credit period. He did not elaborate further.
A Kingfisher Airlines spokesperson said there was no provision in the agreement for penal interest on payment dues.
Ragini Chopra, a Jet Airways spokesperson, said representatives of her airline would shortly meet the oil marketing companies to sort out the issues.
“We have already paid our dues. As per the directive of the ministry of civil aviation, we are supposed to meet oil companies to reach a mutual understanding on the issue of interest payment on the outstanding amount,” she said.
27/01/09 PR Sanjai/Livemint

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Categories: Jet Airways Jan 2009, Kingfisher Jan 2009