Thursday, September 05, 2019

Oil firms give in to Centre’s pressure, agree to refuel AI

In a major relief to the national carrier, oil companies have agreed to continue the supply of aviation fuel (ATF) to Air India, after the Centre intervened. An arrangement was arrived at after a couple of meetings were held by the Aviation secretary with representatives from the concerned oil companies recently, say sources.

The Oil Marketing Companies (OMC) were assured that their dues would be cleared soon, in two to three tranches. Air India owes approximately Rs 4,300 crore to three oil companies, viz, Indian Oil, Hindustan Petroleum and Bharat Petroleum.

Since April, the airline has been defaulting on it’s cash-and-carry arrangement, where it pays Rs 18 crore, per day, to these companies for tanking up.
05/09/19 Sameer Dixit/DNA

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