Oil marketing firms threaten to cut supply to Air India in case of default Noor Arora
State oil marketing companies have stepped up pressure on Air India, threatening to suspend supplies in case of default. On Monday, the Indian Oil Corporation threatened to snap supply at eight airports over pending dues. However, supply was not discontinued, as the airline made a payment of Rs 1 billion. Air India group companies uplift fuel around Rs 220-230 million daily and the amount has risen over last couple of weeks because of increase in fuel prices. “We have paid about Rs 1 billion today. We are regular in our present day payments. We have also made hike in fares and will be able to raise enough cash to make regular payments. There was no discontinuation of fuel supplies and our operations are normal,� said an Air India official. An Indian Oil official confirmed that a letter had been issued on discontinuation of fuel supplies.
ARTICLE SOURCE: BS