Oil companies resume fuel supplies, Air India operations normal

Mumbai/Thiruvananthapuram: Oil companies resumed supply of jet fuel to national carrier Air India on Friday after huge unpaid bills led to the cancellation of four flights earlier in the day.
"We have reached an understanding on the issue. We would be paying for our jet fuel requirements and also expect further relief from the ministry of civil aviation in this regard," senior Air India operations official told IANS.
According to the Mumbai-based official, the understanding on fuel supply was reached after senior officials from Air India and oil marketing companies discussed the issue, which had till afternoon grounded four domestic and international flights.
"High-level parleys were conducted between two-sides to reach the understanding," the official said.
Earlier, the flag carrier was placed on a cash-and-carry basis by the three state-owned oil marketing companies, including Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited ( HPCL )) and Bharat Petroleum Corporation Limited ( BPCL )), for the unpaid fuel dues.
"We have placed Air India on cash-and-carry basis. They would now pay us every time they buy jet fuel from any of the three companies," senior official with a public sector oil firm told IANS.
Currently, the airline has a consolidated fuel debt worth Rs.2,000 crore to the three oil firms. Air India confirmed that it will be paying the required amount to buy jet fuel from the oil firms. "We will be paying them for our immediate needs," Air India official said.
27/05/11 Economic Times

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Categories: Air India May 2011