Six private airlines owe Rs 1,887 crore to public OMCs

New Delhi: Six private airlines, including Jet and Kingfisher, owed Rs 1,887.82 crore to public sector oil companies, Civil Aviation Minister Praful Patel informed the Rajya Sabha.
He was replying to question on how much dues the airlines owed to public sector oil companies like Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL).
According to Patel, Jet airways led the defaulters pack with Rs 960.15 crore, followed by Kingfisher (Rs.814.49 crore), Spicejet (Rs 74.5 crore) and Paramount Airways (Rs 19.28 crore).
Asked whether the oil companies were losing money due to this, the minister said: "Holding up of payments by the private airlines do not add to the losses of oil marketing companies (OMCs) as interest is being recovered on overdue payments."
He added that if the airlines fail to pay their dues the OMCs can take actions like putting the defaulting airlines on a "cash and carry" basis.
17/08/10 IANS/Economic Times

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Categories: Indian Aviation- In General Aug 2010