Thursday, September 20, 2018

Oil companies may stop fuel supplies to Air India over huge dues

New Delhi: Air India has reportedly slipped in its payments to oil marketing companies (OMCs), prompting many to issue an ultimatum saying start paying for jet fuel on a daily basis or face a supply cut. The ailing airline’s unpaid bills ran up to Rs 5,000 crore, reported the Economic Times citing multiple people aware of the matter.
The report mentioned that Air India buys fuel worth about Rs 20 crore daily, which the airline has not been able to pay in full, compelling fuel companies to serve an ultimatum.
The beleaguered airline has not cleared dues owing to its financial problems, a senior aviation ministry official told the daily on a condition of anonymity. However, he went on to add that Air India and oil companies are negotiating, without giving any details.
A senior Air India official mentioned the airline is talking to oil companies on the issues and it is being resolved. Oil companies have also demanded a concrete plan from the state-run carrier to clear their pending dues.
“Air India is a PSU and that's why we are continuing to supply. Had it been a private firm, we could have already stopped the supply,” a senior executive at a state-run oil company told the publication.
20/09/18 Times Now
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