Cash-strapped Air India again found itself in trouble as state-owned companies on Thursday refused it supplies of Aviation Turbine Fuel (ATF) for reportedly failing to honour payments even after the 90-day credit period.
However, the ailing national carrier said it had already paid Rs. 180 crore and would pay another instalment of Rs. 40 crore by Friday.
“I have spoken to the Petroleum Secretary [asking him] not to disrupt jet fuel supplies,” Civil Aviation Secretary Nasim Zaidi said here.
Indian Oil, Bharat Petroleum and Hindustan Petroleum jointly stopped ATF supplies to the airline in Delhi, Mumbai, Kolkata, Thiruvananthapuram and Kochi from 4 p.m.
Mr. Zaidi said AI would soon release yet another instalment of Rs. 40 crore to the oil firms. Senior officials of the airline said it owed the companies Rs. 260 crore for the credit period and maintained that the carrier was well within the credit limit.
But an oil company official said: “The government had last year asked us to give Air India a 90-day credit period, which we diligently did. As per that, payments for ATF sold in mid-October [last] were due on January 22 but it did not make any payment.”
Earlier also the oil companies resorted to putting AI on hard options of cash and carry but relented after the government intervened and assured them payments.
No disruption in Hyderabad
Hyderabad Special Correspondent reports:
In Hyderabad, there was no cancellation of AI flights departing from the Rajiv Gandhi International Airport on Thursday as the oil companies maintained ATF supply, according to the carrier's spokesperson. As many as 17 flights, some of them international routes, were on schedule. One flight to Mumbai was delayed by 90 minutes.
