Fuel companies halt supply to cash-strapped Air India
Several state owned oil companies again halted fuel supply to national flag carrier Air India at six airports, citing unpaid dues.
The oil marketing companies, led by Indian Oil, stopped supplying Air India on Thursday at Ranchi, Mohali, Patna, Vizag, Pune and Cochin airports.
Still, both parties expect ‘a resolution’ soon, a senior Indian Oil official told local media.
Air India said all flight operations are currently normal and not impacted and contingencies are in place.
"Flights have been loaded with return sector fuel to ensure that operation will not get impacted."
It is not the first time oil companies have withheld supplies.
It happened a few months ago but was quickly resolved.
"In the absence of equity support Air India cannot handle the huge debt service liabilities," an airline spokesman said.
"Our financial performance, however, this fiscal is very good and we are moving towards a healthy operating profit. The airline despite its legacy issues is performing very well," he said.
"We are in discussion with the OMCs to resolve the issue. Additionally, we have also paid for past supplies and made today’s payments as well," the airline said.
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