OMCs warn Air India of stopping fuel provide at 2 extra airports over unpaid bills – Livemint

OMCs warn Air India of stopping fuel provide at 2 extra airports over unpaid bills – Livemint

Mumbai:Air India’s flight providers and products, in conjunction with these for Haj, are inclined to be hit partially following the menace by IOC-led oil advertising and marketing corporations to hunch fuel affords at two extra airports — Hyderabad and Raipur — over non-payment of dues.

Recount-owned oil advertising and marketing corporations beget already stopped supplying fuel to Air India flights in Pune, Vizag, Cochin, Patna, Ranchi and Mohali since 22 August.

The direct-bustle carrier owes about 4,300 crore in dues to the three OMCs — Indian Oil Corp, Hindustan Petroleum Corp Ltd and Bharat Petroleum Corp Ltd.

Even though Air India is on cash-and-lift mode since April this year, and has been paying 18 crore per day in direction of day-to-day jet fuel bills, the OMCs beget sought clearance of all dues at the earliest.

“The OMCs beget requested Air India to rep a lump sum payment in direction of outstanding amount, in conjunction with ardour at the earliest, announcing if the carrier fails to attain so, they would extend the suspension of fuel affords to Hyderabad and Raipur airports as successfully from 6 September,” a supply aware of the construction said.

Air India would now not operate global flights from six airports the set the OMCs beget no longer been supplying jet fuel since 22 August.

“Nonetheless, if it is stopped in Hyderabad as successfully, there will seemingly be extreme affect on just a few of our in another country flights besides to Haj operations besides to domestic operations,” said the supply quoted above.

“Air India’s full fuel invoice dues had been 4,600 crore as of 31 March 2019, which came down to 4,300 crore by 31 July… Additionally, since 1 April this year, Air India is making a payment of 18 crore per day for day-to-day fuel consumption.”

An Air India spokesperson refused to dispute.

To this level, the nationwide carrier became managing operations from the six airports by rescheduling flights, nonetheless if affords had been lower at two extra airports, especially Hyderabad, it may maybe perhaps beget a noteworthy affect on its total operations, the supply added.

On Wednesday, Indian Oil defended lowering jet fuel affords to Air India. “We ourselves are borrowing spherical 75,000 crore yearly, which manner we are a ranking borrower and no longer a cash-surplus firm. To aid credit ranking to Air India, we desire to borrow from the markets,” IOC chairman Sanjiv Singh had said.

IOC affords 90-day credit ranking to Air India, nonetheless the dues had been mounting, and it’ll be about 240 days now.

“So the total dues to us, in conjunction with ardour, is greater than 2,900 crore. Even supposing we attain no longer take any formal bank guarantee from a public sector entity, which we attain from inside of most airways, now we are a puny timid and cannot consistently aid the airline,” Singh had said.

Read Extra

This site uses Akismet to reduce spam. Learn how your comment data is processed.