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Oil companies stop supplying to Air India at 6 airports; say AI hasn’t paid in 200 days

New Delhi | State-owned oil companies have stopped supplying fuel to Air India at 6 airports over non-payment of dues in more than 200 days.

The flight operations are currently operational and unaffected.

Indian Oil, Bharat Petroleum, and Hindustan Petroleum on Thursday stopped supplying fuel to the national carrier in airports of Kochi, Pune, Patna, Ranchi, Vizag, and Mohali over payment default.

“Air India has a 90 day credit period, which means they have to make payment for fuel they buy today by November 21. But Air India had not been making payments and the credit period was now over 200 days,” a senior official at one of the three state-owned oil firms said.

The unpaid dues amount upto approximately Rs 4,500 crores.

The airline reportedly offered to pay Rs 60 crores, but the oil companies said it wasn’t enough.

A spokesperson of AI said, “In the absence of equity support Air India cannot handle the huge debt service liabilities.”

“Our financial performance, however, this fiscal is very good and we are moving towards a healthy operating profit. The airline despite its legacy issues is performing very well,” he added.

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