We will clear dues soon, Air India tells oil firms

New Delhi: State-owned oil companies yesterday snapped supplies of jet fuel to Air India for failing to honour payments even after 90-day credit period.
However, the ailing national carrier said it has paid Rs 180 crore and would pay another Rs 40 crore by Friday.
"I have spoken to the Petroleum Secretary not to disrupt (aviation turbine fuel) supplies and he has assured," Civil Aviation Secretary Nasim Zaidi told PTI.
All three oil companies -- Indian Oil, Bharat Petroleum and Hindustan Petroleum -- jointly stopped ATF supplies to Air India at Delhi, Mumbai, Kolkata, Chennai, Trivandrum and Kochi from 1600 hrs today.
Zaidi said the cash-strapped carrier had just paid Rs 180 crore. Rs 40 crore would be released tomorrow and another Rs 40 crore soon.
Senior Air India officials claimed the airline owed Rs 260 crore to the oil companies for the credit period and "we are well within the credit limit."
The oil companies decided to stop ATF supplies saying Air India had not honoured its commitment to make payments for jet fuel it bought from the oil companies even after expiry of 90 day credit period.
03/02/12 PTI/Daily Bhaskar.com

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Categories: Air India Feb 2012