Now, Jet seeks ministry’s help for concessions from oil firms

New Delhi: In the wake of mounting losses, the country’s largest private airline, Jet Airways, is again knocking on the government’s door looking for some reprieve. It has now asked the civil aviation ministry to take up its case with the oil ministry to grant it “temporary concession in the commercial terms” from oil marketing companies.
The airline, in its recent communication to the government, has sought extension of the credit period from the oil marketing public sector units from 60 days to 90 days. It has also sought interest payment waiver on the delayed payments till date. The company has told the ministry that a substantial chunk of its total dues towards all suppliers consists of those towards oil companies on account of the rise in fuel prices in 2008. In 2008-09, the annual fuel bill of the company ran up to Rs 500 crore. It has cited its precarious cash flow situation over the last 12 months — mainly on account of the general economic slowdown — as the reason for seeking the concession.
11/11/09 Smita Aggarwal/Indian Express

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Categories: Jet Airways Nov 2009