Oil marketing companies suspend supply of aviation fuel to Air India: Sources

It is learnt that supply of ATF has been suspended for Air India's domestic flights.

Going nowhere?

New Delhi: In what could be a massive setback for Air India, oil marketing companies in the country have reportedly suspended supply of aviation fuel to the national carrier due to payment dues yet to be cleared.

Sources have revealed that fuel supply for Air India for all its domestic flights have been suspended from eight locations in the country - Mohali, Patna, Pune , Trivandrum, Lucknow, Vishakhapatnam, Coimbatore and Jaipur. The decision is learnt to have been enacted from 1600hrs onwards on Monday.

It has also been learnt that the decision to suspend supply comes because Air India has apparently defaulted on recent payments to oil marketing companies. It owes a total of Rs 5000 crore and has been paying a daily sum of Rs 20 crore. It is this daily amount that has reportedly been erratic, compelling the oil companies to suspend supply.

Meanwhile, Air India has approached the government for capitalisation of Rs 2,000 crore.

(Reporting: Swati Khandelwal/Zee Business)