Sunday, September 01, 2019

Unpaid fuel bills: Haj pilgrimage may hit after OMCs warn AI of stopping supply at 2 more airports

Flight services of flag carrier Air India, including those for Haj pilgrimage, might be hit partially following the IOC-led oil marketing companies (OMCs) threatening to suspend fuel supplies at two more airports -- Hyderabad and Raipur-- over non-payment of dues.

The state-owned oil marketing firms have already stopped supplying fuel to Air India flights at Pune, Vizag, Cochin, Patna, Ranchi and Mohali since August 22.

The three OMCs -- Indian Oil Corporation, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd -- together have around Rs 4,300 crore in dues from Air India.

Though Air India is on cash-and-carry mode since April this year and making a payment of Rs 18 crore per day towards daily jet fuel bill, the OMCs have sought clearance of all dues at the earliest.

"The OMCs have asked Air India to make a lump sum payment towards outstanding amount including interest at the earliest, saying if the carrier fails to do so, they will extend the suspension of fuel supplies to Hyderabad and Raipur airports as well from September 6," a source privy to the development told PTI.

He said that Air India does not have international operations from the six airports where the OMCs have not been supplying jet fuel to its flights since August 22.

"However, if it is stopped in Hyderabad as well, there will be a severe impact on some of our overseas flights as well as Haj operations in addition to domestic operations," he said.

"Air India's total fuel bill dues were Rs 4,600 crore as of March 31, 2019, which came down to Rs 4,300 crore by July 31," the source said. "Also, since April 1 this year, Air India is making a payment of Rs 18 crore per day for daily fuel intake," the source added.
31/08/19 PTI/CNBC TV18
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