New Delhi: Cash-strapped Air India was forced to ground 20 flights on Friday after oil companies refused to supply jet fuel for non-payment of dues. The aviation ministry said they were trying to resolve the issue.
The ministry says oil-marketing companies have flouted a cabinet secretariat directive by denying jet fuel to the national carrier at a pre-decided price.
"We are trying to resolve the issue and it has been happening almost every week, despite a directive by the cabinet secretariat to the fuel companies to supply ATF to Air India until May 31 in accordance with an agreement reached in April," a senior aviation ministry official said.
Oil marketing firms Indian Oil Corp, Bharat Petroleum and Hindustan Petroleum had put the carrier on cash-and-carry sales model in December. They stopped fuel supply to the airline after sending it a notice to clear dues. This comes in the backdrop of a rise in the price of aviation turbine fuel (ATF).
28/05/11 Anindya Upadhyay/Economic Times
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