Monday, October 08, 2018

Air India makes part payment after oil companies threaten to cut fuel supply

New Delhi: Air India's domestic passengers out of eight major cities, including some state capitals, have been spared major flight disruptions. Oil companies on Monday morning told AI that they will not supply jet fuel to aircraft of AI group -- AI, AI Express and Alliance Air -- from 4 pm on Monday due to mounting dues. However after getting some payment, they reportedly did not cut the supplies as threatened at: Mohali (Chandigarh), Patna, Pune, Trivandrum, Jaipur, Lucknow, Visakhapatnam and Coimbatore.
"AI was to pay about Rs 100 crore to the oil marketing companies (OMC) on Monday morning as payment for fuel uplifted over the weekend. When they did not get the same by afternoon, the stop-supply order for right places was issued. But after 1 pm they got the payment and our aircraft are getting fuel without any disruption," said a senior AI official.

Indian Oil's marketing division at Coimbatore Airport sent an order to AI station head there saying: "We have been instructed by our head office that OMCs have decided to suspend supplies to all domestic flights of Air India group at 8 locations (from) October 8, 4 pm. This is for kind information."
AI owes about Rs 4,200 crore to OMCs as dues and current outstanding in credit period. Almost every service or goods provider to AI is seeking it's dues. Whether this includes aircraft lessors, oil companies and airport operators.
08/10/18 Saurabh Sinha/Times of India
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