Despite warnings, AI says will ensure services not hit
Oil firms give ultimatum over payment of dues ◗ In August, the fuel suppliers had said that AI owes about `5,000 crore and payments have been delayed by almost 8 months
Despite an ultimatum from oil companies to pay up their dues or aviation jet fuel supplies will be hit, Air India on Sunday tried to put up a brave face and said all measures are being taken to ensure that flights are not disrupted and passengers are not inconvenienced.
In a letter sent to Air India last week, three government-owned oil PSUs — Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) — had threatened to stop aviation jet fuel supplies at six main domestic airports if it does not clear its monthly lump sum payment by October 18.
These companies added that Air India had made a commitment towards daily payment which it has mostly adhered to but the outstanding has not come down considerably in the absence of the committed monthly lump sum payment.
While senior officials of the ministry went in a huddle to resolve the crisis, the Air India tried to assure its passengers that there is nothing to worry about and the operations will not be hit.
“The issues with oil companies are being sorted out and would be resolved early. Meanwhile, Air India has taken all measures to ensure that flights are not disrupted and passengers are not inconvenienced at all. There is no reason whatsoever for any concern by esteemed Air India passengers,” said Air India Spokesperson Dhananjay Kumar.
Air India debts have piled up to over `60,000 crore and in 2018-19 the airlines posted a net loss of around `8,400 crore. The government is working out the process to sell its stake in
In August too, three fuel suppliers had said that the national carrier owes about `5,000 crore and payments have been delayed by almost eight months. They even stopped fuel supplies at Kochi, Mohali, Pune, Patna, Ranchi and Vishakhapatnam over payment defaults on August 22.