Air India says overdue fuel payment issues with oil companies to be resolved soon

By: |
Updated: Oct 13, 2019 3:24 PM

The non-payment of dues to oil companies has been due to “overall lack of adequate funds,” Air India chairman and managing director Ashwani Lohani had said in a statement earlier.

air india recruitment, air india recruitment 2019Air India uplifts around 250 kilolitres of jet fuel at the six airports on a daily basis.

Struggling with the inability to pay for fuel bills, cash-strapped national carrier Air India on Sunday said that the issues with the fuel retailers over fuel payment would be resolved soon. An Air India spokesperson said that issues with oil companies are being sorted out and would be resolved early, CNBC-TV18 tweeted. The airline has “taken measures to ensure” that there is no disruption in flights and inconvenience to passengers. The spokesperson added that there is no reason for any concern by passengers.

PSU oil majors including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum on Thursday had written a letter to Air India for making the monthly lump sum payment by October 18, as reported by PTI, to avoid stoppage of fuel supply at six major airports including Mohali, Patna, Kochi, Vizag, Pune, and Ranchi.

Also read: PNB, UBI, OBC merger: Outside expert may be roped in to decide logo of new entity

The non-payment of dues to oil companies has been due to “overall lack of adequate funds,” Air India chairman and managing director Ashwani Lohani had said in a statement in August claiming that it doesn’t reflect on the operational performance and recent efforts of the airline in any way. 

In August, the oil companies had snapped fuel supply at six airports “in the wake of long-overdue payments to the tune of Rs 5,000 crore,” an IOC statement had said on behalf of the three firms. However, the supply was restored after one-day post-intervention by the aviation ministry while the airline had committed to making payment of Rs 100 crore per month apart from the same day payment for the daily uplift of the fuel, PTI had reported. Air India reportedly uplifts around 250 kilolitres of jet fuel at the six airports on a daily basis but after fuel cut, it was tanking up its flights (operating from the six airports) from other airports.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1AGR takes Vodafone-Idea losses to Rs 25,467 crore in Q1
2SC transfers all NCLAT cases of Jaypee to itself to cut delays
3Big relief to borrowers: Banks, NBFCs can recast personal loans, extend moratorium