Air India denies any problem in air services due to halt in fuel supply
Air India denies any problem in air services due to halt in fuel supply

NEW DELHI: Air India, a public sector airline, which is burdened with debt, has been put on hold to supply fuel at some airports. The move comes in the wake of not clearing dues by oil companies. The airline owes over Rs 4500 crore to three oil companies, which the airline has not repaid for the past seven months. The Air India Chairman has said that the supply of oil to the company has been stopped due to shortage of funds.

But this has not affected the services of the company. A senior official had said that Air India gets a 90-day credit period. As on date, they have to pay by November 21 on fuel. But the state-run airline has not paid for 200 days, which led to the move. Air India had offered Rs 60 crore, which is similar to a drop in the sea.

The three oil companies had written to Air India a week ago before stopping the supply of fuel, but there was no response to the letter. The oil companies argue that they do not get any financial help from the government, while Air India gets full support from the government. The airports where oil companies have stopped supply include Ranchi, Mohali, Patna, Visakhapatnam, Pune and Kochi. Earlier, oil companies had stopped supplying fuel.

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