Decision comes after national carrier failed to comply with Rs 100 crore per month payment as agreed upon; move, however, will not affect flight schedules, says Air India
New Delhi: The Indian Oil Corporation (IOC) has decided to stop the aviation turbine fuel (ATF) supply to Air India as it failed to comply with Rs 100 crore per month payment as agreed upon, beginning from Friday.
The decision comes days after public sector oil marketing companies including IOC, BPCL and HPCL had threatened to discontinue fuel supplies to the national carrier at six major airports in the country.
The airports in question are Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bengaluru. It would mean that a number of international flights will also be cancelled causing inconvenience to international passengers.
The oil companies had claimed an outstanding amount of Rs 5,000 crore towards the national carrier.
Fuel supply to AI group has been discontinued since August 22 at six airports – Kochi, Mohali, Pune, Ranchi, Patna and Visakhapatnam.
While the airline has been paying in full for daily uplift of fuel, it admits clearing dues is not possible without getting equity infusion from the government immediately to meet the working capital requirement and stay afloat.
However, Air India insisted the move will not affect the schedules or movements of flights.